Assume the AS curve is upward-sloping. If the multiplier is 4 and the government increases transfer payments by $10 billion, then real output will increase by
A. Less than $30 billion.
B. Exactly $40 billion.
C. Exactly $30 billion.
D. Exactly $50 billion.
Answer: A
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The portfolio theories of money demand state that the demand for real money balances is ________ related to income and ________ related to the nominal interest rate
A) positively; negatively B) positively; positively C) negatively; negatively D) negatively; positively
Which of the following statements is incorrect with respect to the balance of payments?
a. It constitutes a record of transactions between residents within one country. b. It consists of a current account, a capital account, and an account to record omissions and errors. c. Transactions that result in a demand for domestic currency are always entered as a credit. d. It must balance in the aggregate, but separate accounts can show deficits or surpluses. e. It constitutes a record of a country's trade in goods and services and financial assets.
If antitrust legislation is successful, then the monopolistic firm will
A) decrease output and charge a lower price than before. B) increase output and charge a higher price than before. C) increase output and charge a lower price than before. D) decrease output and charge a higher price than before.
The only source of economic growth is growth in the number of workers in the economy.
Answer the following statement true (T) or false (F)