Which one of the following would shift the aggregate demand curve to the left?
A) an increase in the money supply B) an increase in exports
C) an increase in taxes D) an increase in government spending
C
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An incentive is
A) a reward or a penalty that encourages or discourages an action. B) when people make rational choices by comparing costs and benefits. C) what you must give up to get something. D) a choice is made on the margin. E) a good or service that satisfies wants.
Households in the former Yugoslavia were required to declare the number of radios and television sets they owned, and to pay a monthly tax on each. From the perspective of the free-rider problem, the radio and TV taxes attempted to
A) generate negative externalities on Yugoslav households. B) generate positive externalities on Yugoslav households. C) coerce households into paying for the radio and television broadcasts. D) coerce households into listening less to radio and watching less television.
The distributed lag model is given by
A) Yt = ?0 + ?1Xt + ?2Yt-1 + ut. B) Yt = ?0 + ?1Yt-1 + ?2Yt-2 + ... + ?rYt-r + ut. C) Yt = ?0 + ?1ut + ?2ut+1 + ?3ut+2 + ... + ?r+1ut+r + et. D) Yt = ?0 + ?1Xt + ?2Xt-1 + ?3Xt-2 + ... + ?r+1Xt-r + ut.
The greater the legal reserve ratio, the:
A. lower the spending multiplier. B. higher the money multiplier. C. higher the spending multiplier. D. lower the money multiplier.