An increase in the price level, other things equal, will shift the ________.
A. consumption and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward
B. consumption, investment, and net exports schedules of the aggregate expenditures model upward
C. consumption, investment, and net exports schedules of the aggregate expenditures model downward
D. consumption and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward
Answer: C
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When lenders are unable to get good information about the worthiness of a project the lender has the problem of
A) adverse selection. B) moral selection. C) moral hazard. D) adverse hazard.
Sasha derives utility from consuming apples and tacos as shown in the table above. Apples cost $1 each and tacos cost $2 each. If Sasha's income is $8, he will consume
A) 4 apples and 2 tacos. B) 2 apples and 3 tacos. C) 0 apples and 4 tacos. D) 3 apples and 3 tacos.
Each ADR represents ________ of the shares of the underlying foreign stock.
A) some number B) 100 C) 1 D) ADRs have nothing to do with foreign stocks.
All of the following are aspects of macroeconomics EXCEPT
A) the U.S. unemployment rate. B) the production decisions of a pharmaceutical firm. C) the budget deficit of the United States. D) foreign trade.