Policies designed to pay off the national debt will result in:
A. A smaller level of aggregate demand
B. Inflation.
C. A higher level of aggregate demand.
D. A redistribution of income but not wealth.
Answer: A
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Assume that the yuan-dollar nominal exchange rate at the beginning of 2012 was 4 yuan per dollar and at the beginning of 2013 was 6 yuan per dollar
Given this information, identify the currency that appreciated and the currency that depreciated over 2012.
Classical economists believed that
a. the market system always operated at a position of full employment. b. occasional problems of unemployment could occur but would be quickly eliminated by the system of self-regulating markets. c. the price level would adjust to balance planned saving with planned investment. d. the economy had several possible equilibrium output levels.
Which of the following is one of the main reasons why China has recently received large amounts of foreign direct investment?
a. The prospect that multinational firms have of selling to the massive Chinese market b. The lack of environmental standards under the communist government of China c. The prospect of using forced child labor for cheaper production in this country d. The relative strength of the Chinese currency, which makes any investment there worthwhile e. The advanced southeast Asian highway system, which makes transportation extremely efficient
Total income in the United States is comprised of
a. wages only. b. wages and fringe benefits only. c. rents, profits, and interest payments only. d. wages, fringe benefits, rents, profits, and interest payments.