The short-run effect of a sudden increase in stock prices will be
a. an increase in output and a decrease in prices.
b. an increase in both output and prices.
c. a decrease in both output and prices.
d. a decrease in output and an increase in prices.
B
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Refer to Figure 27-1. An increase in taxes would be depicted as a movement from ________, using the static AD-AS model in the figure above
A) A to B B) E to B C) B to C D) C to D E) B to A
The action taken by a country's central bank to prevent balance of payments policies from influencing the country's domestic money supply is called a:
A) fiscal policy intervention. B) monetary policy intervention. C) sterilized intervention. D) non-sterilized intervention.
In the short run, a firm can:
a. change its machinery, but not the number of workers. b. change the number of workers, but not its machinery. c. change its machinery, but not the number of workers. d. change the number of workers, but not its machinery.
If the MPC is .9, how much is the multiplier?
What will be an ideal response?