According to the graph showing rational expectations and the AD/AS model, expansionary policies will cause ______.
a. a move to a lower point on the short-run aggregate supply curve
b. a move to a higher point on the short-run aggregate supply curve
c. the short-run aggregate supply curve to shift to the left
d. the short-run aggregate supply curve to shift to the right
c. the short-run aggregate supply curve to shift to the left
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If the Fed wants to depreciate the dollar against the yen, the Fed will
A) increase the supply of dollars by selling yen. B) increase the demand for dollars by selling yen. C) decrease the supply of dollars by selling yen. D) increase the supply of dollars by buying yen.
The net export function illustrates that:
a. net exports are a positive function of domestic income. b. net exports are independent of domestic income. c. net exports are a negative function of domestic income. d. exports are a negative function of foreign income. e. exports are independent of foreign income.
Which group or groups buy U.S. public debt?
a. Government agencies b. Private individuals c. Private institutions d. All of the above.
Why does it make sense for unprofitable firms to stay in business?
What will be an ideal response?