An increase in consumption at any given level of income is likely to lead to:
a) Higher aggregate demand
b) An increase in exports
c) A fall in taxation revenue
d) A decrease in import spending
Ans: a) Higher aggregate demand
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An individual or country that has a comparative advantage in the production of one good
A) may or may not have an absolute advantage in the good's production. B) must have an absolute advantage in the good's production. C) must not have an absolute advantage in the good's production. D) must not have an absolute advantage in the production of the other good.
For price-taking producers, isoprofit curves are always parallel to one another.
Answer the following statement true (T) or false (F)
________ is a company that obtains funds primarily from wealthy investors and uses the funds to make complicated, often risky investments
A) A mutual fund B) A pension fund C) A hedge fund D) An investment bank
In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy
a. increases exports and decreases imports. b. decreases exports and increases imports. c. encourages foreign capital inflows to the U.S. d. both b and c. d. None of the above