If the MPS in an economy is .4, government could shift the aggregate demand curve leftward by $50 billion by:
A. reducing government expenditures by $125 billion.
B. reducing government expenditures by $20 billion.
C. increasing taxes by $50 billion.
D. increasing taxes by $250 billion.
B. reducing government expenditures by $20 billion.
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Who said our economy "seems capable of remaining in a chronic condition of subnormal activity for a considerable period without any marked tendency either toward recovery or toward complete collapse"?
A. David Ricardo B. Jean Baptiste Say C. Wassily Leontief D. John Maynard Keynes
Which of the following is not a store of value?
a. Federal Reserve notes. b. Credit card. c. Debit card. d. Passbook savings deposit.
Which of the following government functions could most easily be handled by the private sector?
a) education b) national defense c) the legal system d) the police force e) foreign policy
Which of the following would be most likely to help the residents of a nation produce a larger output and consume a wide variety of products at economical prices?
a. imposition of tariffs on imported goods b. quotas that protect domestic businesses against foreign producers that pay workers low wages c. free trade d. exchange rate controls