Suppose the government decided to ease monetary policy, then increase taxes. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; increase
B) lower; decrease
C) lower; have an ambiguous effect on
D) have an ambiguous effect on; increase
C
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In general, in a given rich country the ______________ the opportunity cost for a woman of having and raising a child, the _____________ children she will have
A) higher; fewer B) higher; more C) lower; fewer D) lower; more E) a and d
If a Proposer and a Responder are asked to split $100 in the ultimatum bargaining game, standard economic theory would predict that the Responder should:
A. reject any amount over $50. B. accept any amount offered by the Proposer. C. only accept an offer for exactly $50. D. reject any amount less than $50.
A capital gain is
A. an increase in the value of an asset over the price initially paid for it. B. a financial instrument that gives the holder a share in the ownership of a firm and therefore the right to share in the profits of the firm. C. the portion of a corporation's profits that the firm pays out each period to its shareholders. D. the difference between an individual's economic income and money income.
The countries comprising NAFTA are:
A. Canada, the United States, and Puerto Rico. B. the United States, Mexico, and Chile. C. the United States, the United Kingdom, and France. D. Canada, Mexico, and the United States.