A recession abroad would
a. increase U.S. net exports and increase aggregate demand.
b. increase U.S. net exports and increase aggregate supply.
c. reduce U.S. net exports and reduce aggregate demand.
d. reduce U.S. net exports and increase aggregate demand.
c
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Currency held by the nonbanking public is a medium of exchange
a. True b. False Indicate whether the statement is true or false
An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where
a. the MPC is small. b. the MPC is large. c. aggregate supply curve is flat. d. aggregate supply curve is steep.
The mythical country of Quitar has just established a policy to give very generous in-kind benefits to the nation's poor, currently defined as those earning less than $10,000 a year. Several years later, the poverty rate has not fallen. Why not?
The Circular Flow Model:
a. Shows that inflation harms consumers and boosts business profitability. b. Proves that inflation reduces the purchasing power of consumers and does not affect businesses. c. Has no application to questions relating to inflation. d. Suggests that when the actual inflation was expected, it may not harm anyone.