In the traditional Keynesian model, if the government raises current taxes
A. the C + I + G + X line will shift down but the aggregate demand curve will not shift.
B. the C + I + G + X line will shift up and the aggregate demand curve will shift to the right.
C. the C + I + G + X line will shift up but the aggregate demand curve will not shift.
D. the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.
Answer: D
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Inflation expectations in the United States generally
A) fell from 1971 to 1976, rose from 1977 to 1985, then fell from 1985 to 1995, and have been stable since then. B) fell from 1971 to 1985, then rose from 1985 to 2000, and have been stable since then. C) rose from 1971 to 1987, then fell from 1987 to 2006. D) rose from 1971 to 1982, then fell from 1982 to 2000, and have been stable since then.
What are the key steps for analyzing Demand functions based on Regression results?
What will be an ideal response?
If a bank has $1,000,000 in reserves and checking deposits of $3,000,000, what is the bank’s reserve position if the required reserve ratio is 20 percent?
A. The bank has $500,000 of required reserves and $500,000 of excess reserves. B. The bank has $600,000 of required reserves and $400,000 of excess reserves. C. The bank has $400,000 of required reserves and $600,000 of excess reserves. D. The bank has $200,000 of required reserves and $800,000 of excess reserves.
One of the principles behind the concept of the circular flow is that
A. the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends. B. in every economic exchange, the seller receives less than the amount that the buyer spends. C. in every economic exchange, the seller receives exactly the same amount that the buyer spends. D. in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends.