An increase in expected future output while holding today's output constant would
A. increase today's desired consumption and decrease desired national saving.
B. decrease today's desired consumption and increase desired national saving.
C. decrease today's desired consumption and decrease desired national saving.
D. increase today's desired consumption and increase desired national saving.
Answer: A
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Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.
In the 1980s, tax rates were cut, government revenues fell below expectations, and there was a then-historic peacetime deficit
a. True b. False Indicate whether the statement is true or false
In the long run, if the Fed lowers the inflation rate and holds it at that new rate,
a. a zero inflation rate will be reached b. a recession will not occur c. inflationary expectations will fall d. the natural rate of unemployment will rise e. structural unemployment will start to decrease
John Maynard Keynes argued that
A. Macro failure is likely to occur but will go away quickly. B. Macro failure is likely to occur, and it isn't likely to go away quickly. C. Macro failure is unlikely to occur. D. None of the choices are correct.