A decline in interest rates tends to expand the economy by
a. encouraging private investment and decrease in bank lending.
b. appreciating the currency and lowering the profitability criterion for investments.
c. decreasing the cost of capital and reducing net exports.
d. depreciating the currency and raising net exports.
d
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If the United States places a limit on Chinese textile imports, this would be an example of
A. an embargo. B. a quota. C. a regulatory trade restriction. D. a tariff.
A scatter diagram could help a policy maker decide on the size of a tax cut necessary to increase consumer expenditures by a certain amount
a. True b. False Indicate whether the statement is true or false
Historically, the government has used fiscal policy to affect the economy through
a. central planning. b. indicative planning. c. aggregate demand. d. aggregate supply.
When the price of Toyota Corollas rises, ceteris paribus, the demand for Corollas falls
Indicate whether the statement is true or false