When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets, there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets
A) dollar; dollar
B) dollar; foreign
C) foreign; dollar
D) foreign; foreign
B
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How is it possible for consumption expenditure to be positive even when disposable income is zero?
What will be an ideal response?
Voucher programs for housing
A. provide rent vouchers for existing housing stock. B. are underutilized with a surplus of housing stock. C. provide down payment assistance to purchase homes. D. are known as Section 8.
Fiscal policy occurs when:
A. the government changes its plan for spending and taxing. B. the Federal Reserve makes changes to the federal budget. C. the government changes its plan for the money supply. D. the government raises or lowers nominal interest rates.
Suppose the government reduces marginal income tax rates and increases welfare payments. This policy combination will:
A. increase the incentive to work. B. have no effect on the incentive to work. C. have an ambiguous effect on the incentive to work. D. reduce the incentive to work.