Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible
a. True
b. False
Indicate whether the statement is true or false
False
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If income increases by $10,000 . government purchases are fixed at $1,000 . investment spending is fixed at $2,000 . net exports are fixed at $500, and the marginal propensity to consume is 0.70, by how much does aggregate expenditure increase?
a. $700 b. $2,000 c. $7,000 d. $1,000 e. $1,400
Many people feel that a negative income tax would ______.
a. make it harder to demonstrate need b. complicate the tax bureaucracy c. lead to better consumption choices d. reduce the incentive to work
Suppose that you work for the Federal Reserve. Unemployment is starting to climb and one of your colleagues has presented an argument in favor of increasing the money supply to stimulating spending and reduce unemployment. Present a counterargument of why reducing unemployment could be detrimental to the economy.
What will be an ideal response?
In November 2008, the leaders of the ________ met in an emergency meeting in Washington to coordinate their responses in terms of both macroeconomic and financial policies
A) G20 B) G7 C) OECD countries D) G8