What is the first round effect on the components of aggregate demand, if the government increases spending (assume fixed exchange rates and financing through the real credit market)?
a. Aggregate demand increases and net exports decrease.
b. Aggregate demand and net exports do not change
c. Aggregate demand decreases and net exports increases.
d. Aggregate demand and net exports increase.
e. Aggregate demand and net exports decrease.
.A
You might also like to view...
Today's U.S. dollar bills are "backed" by
A) nothing. B) Warren Buffet. C) barrels of oil. D) precious metals. E) U.S. Treasury Bonds.
The goal of health insurance is to
a. redistribute income from the sick to the healthy. b. spread risk over a large group of people. c. equally distribute the probability of loss over a large number of people. d. collect sufficient premiums to cover all possible losses. e. equalize the availability of medical care across population groups.
In which of the following countries will the national government have the greatest influence with respect to the nation's economy?
A. China B. Cuba C. Canada D. Chile
Related to the Economics in Practice on p. 447: In the U.S. from 1955 to 1996, the labor force participation rate increased for ________ and decreased for ________.
A. men; women B. white men; African American men C. women; men D. African American women; white women