Crowding out occurs because expansionary fiscal policy:
A) appreciates the exchange rate.
B) lowers foreign income.
C) lowers the interest rate.
D) increases net exports.
Answer: A) appreciates the exchange rate.
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Compared to a perfectly competitive industry, a single-price monopoly produces
A) more output. B) less output. C) the same output. D) some amount that might be more, less, or the same depending on whether the monopoly's marginal revenue curve lies above, below, or on its demand curve. E) some amount that might be more, less, or the same depending on whether the monopoly's marginal cost curve lies above, below, or on its marginal revenue curve.
High unemployment and high rates of inflation are examples of coordination successes
a. True b. False Indicate whether the statement is true or false
Figure36-8
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Which of the graphs in Figure 36-8 illustrates the AD–AS shifts associated with a currency depreciation?
A. 1 B. 2 C. 3 D. 4
The gross national product (GNP) measures ________.
A) the overall market value of final goods and services produced in a country in a year B) the overall gross profit a country earns in a year C) a country's overall income resulting from production in a year D) a country's overall expenditures in a given year E) a country's overall increase in profitability from one year to the next