A decline in the stock market, which makes consumers poorer, would cause
A. the aggregate demand curve to shift to the right.
B. a movement down and to the right along the aggregate demand curve.
C. a movement up and to the left along the aggregate demand curve.
D. the aggregate demand curve to shift to the left.
Answer: D
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Means-tested welfare benefits provide recipients with a strong incentive to:
A. work. B. leave welfare. C. accurately disclose their earnings. D. underreport their earnings.
In long-run equilibrium, which of the following is not equal to price for a perfectly competitive firm?
A. short-run average variable cost B. long-run average total cost C. short-run marginal cost D. short-run average total cost
Suppose your community is considering using public money to build a new sports stadium for a new team that will only stay in the community if it is built for them. Suppose you are watching a news broadcast in which the supporters are saying that it is a good idea because, even though they don't go to the games, it is more fun to live in a town with a team and it is to live in a town without a team. The supporters are relying on the
A. stupidity of voters. B. present value argument. C. local substitution argument. D. externality argument.
When the value of one currency increases relative to the value of another currency, it has experienced:
A. exchange rate appreciation. B. interest rate depreciation. C. net capital inflow. D. exchange rate depreciation.