According to the traditional Keynesian analysis, if the government increases spending and pays for all of it by raising current taxes, then
A) a budget surplus will occur. B) aggregate demand will increase.
C) a budget deficit will occur. D) aggregate demand will decrease.
B
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Which of the following statements concerning the shareholder wealth maximization model is (are) true?
a. The timing of future profits is explicitly considered. b. The model provides a conceptual basis for evaluating differential levels of risk. c. The model is only valid for dividend-paying firms. d. a and b e. a, b, and c
The current empirical evidence indicates that
a. changes in the earth's cloud cover will clearly enhance the warming effects of carbon dioxide. b. the increase in carbon dioxide, over thousands of years, is definitely the cause of global warming. c. if global warming continues as most models predict, then in the next 100 years the sea levels clearly will rise by more than 10 feet. d. none of the above is true.
Could a country be open to international capital flows, control its domestic interest rate and fix its exchange rate? Explain.
What will be an ideal response?
Your spouse complains that her 6% raise this year will not keep up with the increase in prices. In other words, she is unable to buy the same basket of goods with her 6% raise. Therefore, she believes that her
a. nominal income and real income increased. b. nominal income increased, but their real income decreased. c. nominal income and real income decreased. d. nominal income decreased, but their real income increased.