What would happen to aggregate demand if the federal government increased military purchases and state and local governments increased their road building budgets at the same time?
a. AD would increase
b. AD would increase, because only federal government purchases affect AD.
c. AD would increase only if the change in federal purchases were smaller than the change in state and local purchases.
d. AD would decrease only if the change in federal purchases was smaller than the change in state and local purchases.
a
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When the U.S. real interest rate falls ________
A) U.S. dollar assets earn a higher return relative to foreign assets B) it makes U.S. exports more expensive in foreign currencies C) imports will decrease D) all of the above E) none of the above
Nonlinear price discrimination is
A) perfect price discrimination. B) quantity price discrimination. C) group price discrimination. D) two-part pricing.
Owner-provided capital and owner-provided labor are examples of
A) explicit costs. B) implicit costs. C) normal rate of return. D) accounting costs.
Which of the following is the most liquid?
A. checkable and debitable account B. certificate of deposit C. cash D. stocks and bonds