If interest rates in the European Union decrease
A) the demand for U.S. dollars will fall in the foreign exchange market.
B) the supply of U.S. dollars will fall in the foreign exchange market.
C) the demand for euros will fall in the foreign exchange market.
D) nothing will change in the foreign exchange market.
C
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Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising
If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above. A) B to A B) A to E C) C to B D) E to A E) D to C
Refer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS2 and AD2
Now there is an increase in labor productivity which increases total planned production at any given price level and aggregate demand remains stable. The resulting change in the economy's long-run equilibrium position would be represented by a A) movement from B to D. B) movement from C to D. C) movement from C to B. D) movement from A to B.
The balance of payments ____________
a. is always zero b. is always one c. is positive when the nation has a trade surplus d. is negative when the nation has a trade deficit e. is positive when the nation has a trade deficit
Thomas Hobbes argued for a tax on consumption instead of on income because
A. a tax on consumption raises more revenue than a tax on income. B. consumption is the best indication of ability to pay. C. a tax on income discourages saving by taxing savings twice. D. the standard of living depends not on income, but on how much income is spent.