Which of the following claims concerning the importance of effects that explain the slope of the U.S. aggregate-demand curve is correct?
a. The exchange-rate effect is relatively small because exports and imports are a small part of real GDP.
b. The interest-rate effect is relatively small because investment spending is not very responsive to interest rate changes.
c. The wealth effect is relatively large because money holdings are a significant portion of most households' wealth.
d. None of the above is correct.
a
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The Franklin National Bank Crisis had its greatest impact on the market for
A) commercial paper. B) commodity futures. C) negotiable certificates of deposit. D) Eurodollars.
If the demand for labor is plotted against the money wage, with the money wage on the vertical axis, then
a. an increase in the price level will cause the labor demand schedule to shift to the right. b. an increase in the money wage will cause the labor demand schedule to shift to the left. c. an increase in the money wage will cause the labor demand schedule to shift to the right. d. the labor demand schedule will be upward sloping.
The Bush tax cuts of 2001-2010 increased education incentives, and as a result,
A. New vertical inequities were introduced into the tax system. B. The difference between gross incomes and taxable incomes became smaller. C. College enrollments were expected to increase significantly. D. Low-income households benefited more than all other households.
Logrolling refers to
A) choosing political platforms to appeal to special interests. B) trading votes to gain support for legislation. C) choosing political platforms to appeal to the "middle-of-the-road" voter. D) gathering votes by pretending to support policies that appeal to voters. E) c and d