Which of the following would not shift the aggregate demand curve?
A. Income tax rates
B. Real interest rates
C. Productivity rates
D. Foreign-exchange rates
Answer: C
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If the MPC is 0.75, the expenditure multiplier will be
A. 3.5. B. 4. C. 2. D. 3.
The time-inconsistency problem is likely to arise in Cadmia if _____
a. attempts are made to coordinate monetary policy with fiscal policy b. there is a lag between the announcement of a monetary policy and its implementation c. policy makers initially aim to keep the price level stable but do not follow through as promised d. policy makers do not allow enough time for a new policy to take effect e. there is a deep conflict among monetary policy makers
A relative price is:
A. the price of a specific good in comparison to the prices of other goods and services. B. the percentage change in a price index such as the CPI. C. the rate of inflation. D. a measure of overall prices at a particular point in time.
The liquidity-preference model was first introduced in:
A. 2008 by Ben Bernanke. B. 1776 by Adam Smith. C. 1936 by John Maynard Keynes. D. 1970 by John Kenneth Galbraith.