Other things equal, appreciation of the dollar:
A. increases aggregate demand in the United States and may increase aggregate supply by
reducing the prices of imported resources.
B. increases aggregate demand in the United States and may decrease aggregate supply by
reducing the prices of imported resources.
C. decreases aggregate demand in the United States and may increase aggregate supply by
reducing the prices of imported resources.
D. decreases aggregate demand in the United States and may reduce aggregate supply by
increasing the prices of imported resources.
C. decreases aggregate demand in the United States and may increase aggregate supply by
reducing the prices of imported resources
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Which of the following is NOT an example of the adverse selection problem?
A. Buyers in a market for used cars must choose from an undesirable selection of used cars. B. An insurance company must choose one price for its coverage for both high-cost and low-cost people. C. Commercial banks would rather use credit rationing than raising interest rates in the presence of excess demand for loans. D. An insured motorist drives more recklessly.
To an economist, "investment" in the GDP accounts means purchases of new final goods and services by firms.
Answer the following statement true (T) or false (F)
Refer to the data. The marginal cost column reflects:
A. the law of diminishing returns.
B. the law of diminishing marginal utility.
C. diseconomies of scale.
D. economies of scale.
The policy mix that would cause the interest rate to decrease and investment to increase, but have an indeterminate effect on aggregate output, is a mix of
A) contractionary fiscal policy and expansionary monetary policy. B) expansionary fiscal policy and contractionary monetary policy. C) expansionary fiscal policy and expansionary monetary policy. D) contractionary fiscal policy and contractionary monetary policy