In the Keynesian cross diagram, an increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift up, the equilibrium level of aggregate output to ________, and
the IS curve to shift to the ________, everything else held constant. A) rise; left
B) rise; right
C) fall; left
D) fall; right
B
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A decreased government deficit created by a lump-sum tax increase will increase national saving if
A) the value of government bonds outstanding grows slower than the public's wealth. B) it causes consumption to fall. C) the government runs a primary surplus as a result. D) the real interest rate is less than the growth rate of real GNP.
Qwerty
A) is the government agency charged with regulating the internet. B) is an example of a network. C) a cable system prior to VHS. D) none of these choices.
A student eats a candy bar just prior to taking a test and receives a high grade. He does not buy one for the next test and receives a low score. On his third test, he again eats a candy bar and gets a high score. This student concludes that eating candy bars leads to higher test scores. His hypothesis
A. should be termed a “theory.” B. assumes that correlation implies causation. C. assumes that causation implies correlation. D. reflects the amount of studying he had done for the exams.
Over the period 1900-2014, Brazil’s rate of economic growth exceeded that of China.
Indicate whether the statement is true or false.