When the Treasury borrows from the non-bank public and makes an expenditure of an equal amount, the money supply
A) rises by a multiple of the expenditure.
B) rises by an amount equal to the expenditure.
C) rises by an amount less than the expenditure.
D) is unaffected.
D
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As a result of a decline in the expected rate of return on investment, GDP would not have to fall if the government __________ taxes or __________ government spending
A) increased; increased B) increased; decreased C) decreased; increased D) decreased; decreased
In the case of perfectly elastic demand, the demand curve is:
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.
When the absolute percentage change in quantity demanded is just equal to the percentage change in price, demand is
A. relatively inelastic. B. unit-elastic. C. perfectly inelastic. D. elastic.
Which of the following is not a source of comparative advantage?
A) relative abundance of labor and capital B) technology C) climate and natural resources D) a strong foreign currency exchange rate