Crowding out, following an increase in government spending, results from (the exchange rate is the foreign exchange price of the domestic currency)
A) higher interest rates and a lower exchange rate.
B) higher interest rates and a higher exchange rate.
C) lower interest rates and a lower exchange rate.
D) lower interest rates and a higher exchange rate.
Answer: B
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Katy is holding an English auction. If she estimates the values of her bidders to be $2, $4, $10, $15 and $25, she should expect to be able to make ____ off the auction
a. Just above $10 b. Just below $10 c. Just above $15 d. Just below $15
A person who wins a large sum of money in the state lottery is likely to
a. increase the amount of market work offered at each wage rate b. not change the amount of work offered at each wage rate c. decrease the amount of work offered at each wage rate d. substitute market work for leisure time due to the substitution effect e. substitute market work for leisure time due to the income effect
The AD curve will shift when there is a change in:
A. the inflation rate or the money growth rate. B. the money growth rate or the velocity growth rate. C. the real growth rate or the inflation rate. D. the velocity growth rate or the real growth rate.
Refer to the diagram above. The straight line E drawn through the wavy lines would provide an estimate of the:
Recovery trend Recession fluctuation Natural rate of unemployment Economic growth trend