According to the Keynesian model, increased foreign spending for U.S. goods is likely to
a. reduce total employment in the United States.
b. increase total employment in the foreign country.
c. reduce total output in the United States.
d. increase total output in the United States.
d. increase total output in the United States.
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A $20 price tag on a sweater in a department store is an example of money serving as a
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred value.
Refer to the figure above. If AD 1 shifts to AD 2, then the equilibrium output:
Increases from Q1 to Q3 while the price level falls from P2 to P1 Increases from Q1 to Q2 while the price level rises from P1 to P2 Increases from Q1 to Q3 while the price level rises from P1 to P2 Increases from Q1 to Q2 while the price level falls from P2 to P1
A lender expects to earn a real interest rate of 4.5% over the next 12 months. She charges a 9.25% (annual) nominal rate for a 12-month loan. What inflation rate is she expecting? If the lender is in a 30% marginal tax bracket, the borrower in a 25% marginal tax bracket, and they both have the same inflation expectations, what are the real after-tax rates each expects?
What will be an ideal response?
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, producer surplus equals areas
A. B + C + E + F. B. E + F. C. B + C + D + E + F. D. B + C + D + E + F + G.