If Asian economies suffer a serious economic slump, U.S. net exports will
A. increase and AD will shift outward.
B. increase and AD will shift inward.
C. decrease and AD will shift inward.
D. decrease and AD will shift outward.
Answer: C
You might also like to view...
The interest-rate-based approach to the monetary policy transmission mechanism says that a change in the money supply influences aggregate demand by
A) a change in interest rates, which changes investment. B) a change in interest rates, which changes the money supply. C) leading to shifts of the short-run aggregate supply curve. D) changing consumer consumption behavior as they adjust to a change in the number of dollars available.
Suppose Mexico and the United States are on the gold standard. If there is a half an ounce of gold in the dollar, and one quarter an ounce of gold in the peso, then the exchange rate is
A) $0.50 = 1/2 peso. B) $1 = 1/4 peso. C) $1 = 2 pesos. D) $1 = 4 pesos. E) $1 = 1/2 peso.
Other things being equal, an increase in wages paid to workers in firms making digital devices will cause
A) the quantity of digital devices demanded to increase. B) the quantity of digital devices supplied to decrease. C) the supply of digital devices to decrease. D) the demand for digital devices to decrease.
A contractionary fiscal policy is...
What will be an ideal response?