Suppose policy makers want to increase Y and increase NX. Which of the following policies would most likely achieve this?
A) an increase in government spending
B) a real depreciation
C) a reduction in taxes and an increase in the real exchange rate
D) an increase in the real exchange rate
B
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The federal funds rate is ________ of the Fed
A) a technique B) a monetary policy rule C) the monetary policy instrument D) an objective E) a goal
The short-run supply curve and short-run marginal cost curve for a perfectly competitive firm coincide when the market price is greater than average variable cost
a. True b. False Indicate whether the statement is true or false
Which of the following is the correct way to show the effects of a newly imposed import quota?
a. shift the demand for loanable funds left, the supply of dollars in the market for foreign- currency exchange left, and the demand for dollars in the market for foreign-currency exchange right b. shift the demand for loanable funds left, the supply of dollars in the market for foreign- currency exchange right, and the demand for dollars in the market for foreign-currency exchange left c. shift the demand for dollars in the market for foreign-currency exchange to the right d. shift the supply of dollars in the market for foreign-currency exchange to the left
Cutthroat competition is
A. illegal in the U.S. B. a common form of oligopoly in the U.S. C. used only as a last resort by large firms. D. prevalent only in the automobile industry.