The government of Imbrusia introduces new taxes and cuts spending to mitigate recession. Which of the following is likely to happen in Imbrusia, according to the Keynesians?
A. Increase in investment
B. Increase in consumption
C. Increase in unemployment
D. Increase in inflation
Answer: C
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The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, what is the price of college education?
A) $8,000 per year B) $12,000 per year C) $14,000 per year D) $16,000 per year
The demand for dollars is downward sloping because when dollar appreciates,
a. Foreigners demand more US goods and services b. Foreigners demand fewer US goods and services c. Foreigners demand more dollars d. Foreigners do not change their demand for US goods and services
A ____ total cost function yields a U-shaped average total cost function
a. cubic b. quadratic c. linear d. a and b only e. a, b, and c
Cross-price elasticity measures the responsiveness of the price of good A to a change in the price of good B
a. True b. False