For a country with a fixed exchange rate and no sterilization: When the FE curve is steeper than the LM curve, a negative domestic spending shock to the IS curve creates a balance of payments surplus, which then causes the LM curve to shift to the right.
Answer the following statement true (T) or false (F)
True
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The relationship that tells us how much a person intends to spend at various levels of income is
A) the expenditure function. B) the consumption function. C) the buying function. D) the spending function.
The ratio of the burden of the tax borne by demanders to the burden born by suppliers will be equal to the sum of the absolute values of the slopes of the demand curve and the supply curve
a. True b. False
The concept of comparable worth is not a radical departure from market economics
Indicate whether the statement is true or false
A stove is produced by a firm in 2014, added to the firm's inventory in 2014, and sold to a household in 2015 . It follows that
a. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and subtracted from the investment category of 2015 GDP. b. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP. c. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP. d. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and added to the investment category of 2015 GDP.