At any given price level, which of the following fiscal policies will decrease real GDP demanded, other things constant?
a. Increase in fiscal spending on infrastructure
b. Increase in net taxes
c. Increase in transfer payments
d. Increase in money supply
a
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Distinguish between a price-discriminating monopoly and a single-price monopoly
What will be an ideal response?
The value of a firm is
A. the price for which the firm can be sold minus the present value of the expected future profits. B. larger the higher is the risk premium used to compute the firm's value. C. smaller the higher is the risk premium used to compute the firm's value. D. both b and c
One fundamental concept in financial economics is that an investment's rate of return is:
A. Positively related to the price paid for it B. Inversely related to the price paid for it C. Inversely related to the riskiness of the investment D. Inversely related to the maturity of the investment
What is the likely result from a depreciation of a nation's currency when its economy is already operating at its full-employment level of output?
A. Net exports fall and contribute to demand-pull inflation B. Net exports rise and contribute to demand-pull inflation C. Net exports fall, but equilibrium GDP rises D. Net exports rise, but equilibrium GDP falls