Using the multiplier effect, if the government increases purchases of transportation equipment by a certain amount, then total purchases for the economy will ______.
a. decrease by that amount
b. also increase by that amount
c. increase by more than that amount
d. decrease by more than that amount
c. increase by more than that amount
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The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law
Indicate whether the statement is true or false
An increase in the foreign price of the U.S. dollar is called:
a. depreciation of the U.S. dollar. b. appreciation of the U.S. dollar. c. appreciation of the foreign currency. d. readjustment of the U.S. dollar. e. readjustment of the foreign currency.
All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. decrease; decrease B. increase; decrease C. decrease; increase D. increase; increase
Fiscal policy is used mainly to ______ the economy.
a. stabilize b. regulate c. analyze d. track