The expansion of 2002 and beyond was due, at least in part to
a. interest rate increases.
b. increases in housing wealth.
c. increases in investment spending.
d. large reductions in federal spending.
e. increases in taxes.
B
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According to this Application, lower oil prices should ________ aggregate ________
A) increase; demand B) not change; demand C) decrease; demand D) decrease; supply
The lower the price of the good measured on the vertical axis, other thing remaining the same, the flatter the budget line
Indicate whether the statement is true or false
Use Tobin's q theory and the neoclassical theory of investment to explain how optimistic scenarios of the "information age" would cause overinvestment in computer-related capital goods, and how that overinvestment would cause a sudden reversal
What will be an ideal response?
Without considering the effect that a change in the value of a currency might have on trade, the net effect of an expansionary fiscal policy is:
A. ambiguous with respect to the exchange rate, but negative with respect to the trade balance. B. ambiguous with respect to the trade balance, but positive with respect to the exchange rate. C. negative with respect to the exchange rate and positive with respect to the trade balance. D. positive with respect to the exchange rate and negative with respect to the trade balance.