Given fixed exchange rates, which measure is most effective in reducing the unemployment rate?
a. Expansionary monetary policy.
b. Expansionary fiscal policy and expansionary monetary policy are equally effective.
c. Neither expansionary fiscal policy nor expansionary monetary policy is effective.
d. Expansionary fiscal policy.
.D
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With a decrease in government expenditure we
A) move up along the aggregate demand curve. B) move down along the aggregate demand curve. C) shift the aggregate demand curve to the right. D) shift the aggregate demand curve to the left.
From 1998 to 2010, the cost of electricity produced with nuclear power has ________ and the cost of electricity produced with solar power has ________.
A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased
If the current account balance is -$100 billion and the capital and financial account balance is $80 billion, then the official settlement account balance is
A) -$20 billion. B) $20 billion. C) always 0. D) impossible to determine with the information given.
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will shared by all three
Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?