A movement along the MP curve ________
A) implies an automatic adjustment of the interest rate
B) implies an autonomous adjustment to the interest rate
C) implies an autonomous adjustment of aggregate demand
D) all of the above
E) none of the above
A
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Suppose Jill has earned more income this year as compared to what she did last year. Her income tax has also increased. Does it necessarily mean that the income tax system is progressive? Explain
What will be an ideal response?
If an economy's population grows at 3 percent and real GDP grows at 3 percent, then:
a. per capita real GDP is declining. b. the economy's standard of living is increasing. c. per capita real GDP is negative. d. per capita real GDP is constant. e. the economy is experiencing unemployment.
A rise in the overall price level means that:
A. a given number of dollars won't buy as much real goods and services. B. dollar-denominated assets have lost their value. C. the cost of living has gone down. D. None of these is true.
If imports = 500 billion euros, exports = 700 billion euros, purchases of domestic assets by foreign residents = 600 billion euros, and purchases of foreign assets by domestic residents = 800 billion euros, what is the quantity of euros demanded in the market for foreign-currency exchange?
a. 1,100 billion euros b. 600 billion euros c. 500 billion euros d. 200 billion euros