In the short run, following an increase in government purchases,
a. the aggregate expenditure line shifts upward by more than the increase in government purchases
b. real GDP declines by the change in government purchases times the expenditure multiplier
c. the money supply curve shifts rightward because real income rises
d. the interest rate rises because the money demand curve shifts rightward
e. autonomous consumption and investment increase because of the increase in real income
D
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Answer the following statement(s) true (T) or false (F)
1. In the United States, tradeable effluent markets are far less common than they are in other countries. 2. A watershed refers to a hydrologically defined land area that drains into a specific water body. 3. The use of watershed-based NPDES permits allows for permitting multiple point sources within a single watershed. 4. According to the textbook application, efforts to restore the Chesapeake Bay have been markedly successful. 5. The presidential Executive Order that is dedicated to the restoration of the Chesapeake Bay proposes a strictly command-and-control approach to restore and protect this natural resource.
Investment from abroad
a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.
International trade allows a country's consumption possibilities to exceed its production possibilities.
Answer the following statement true (T) or false (F)
The price elasticity of demand is a measure of:
A. the change in quantity demanded of a good that results from a change in its price. B. the demand for a good. C. how consumers respond to excess demand. D. the change in price of a good that results from a change in its quantity demanded.