Which of the following would most likely cause an increase in the supply of dollars?
A. A contractionary fiscal policy that reduced U.S. income and lowered U.S. imports
B. A contractionary fiscal policy that reduced U.S. income and increased U.S. imports
C. An expansionary fiscal policy that raised U.S. income and increased U.S. imports
D. An expansionary fiscal policy that raised U.S. income and reduced U.S. imports
Answer: C
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The assertion that income accrues to people as a consequence of interactions among suppliers and demanders
A) amounts to an endorsement of the existing system. B) amounts to an endorsement of the pattern of income distribution. C) ignores the fact that the interactions are often unfair. D) offers a way of approaching the issue of income distribution.
The national debt
a. exists because of past government budget deficits b. is the difference between the government's spending and revenue in a given year c. is the amount households owe on credit cards, mortgages and other loans d. is a flow variable e. is the same as the government's budget deficit
Devoting more of a country's resources for producing consumer goods means
a. economy is using it resources for future production. b. fewer resources to producing investment goods. c. country will grow more rapidly in the future. d. productivity of the invested capital is extremely high.
A mixed strategy is most useful:
A. in simultaneous games. B. only when the outcome is random. C. in both sequential and simultaneous games. D. in sequential games.