A horizontal LM curve implies that the expenditure multiplier, when compared with the simple Keynesian expenditure multiplier, is
A) smaller.
B) larger.
C) equal.
D) equal to the inverse of the simple multiplier.
C
Economics
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Reflecting the theories of Smith, Ricardo, and Heckscher-Ohlin, free trade permits ______, which allows a country to manufacture and export in those areas where they have a comparative advantage
Fill in the blank(s) with the appropriate word(s).
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What is the Herfindahl index and how is it calculated?
What will be an ideal response?
Economics
Active fiscal policy is the main tool used by the Fed for economic stabilization
Indicate whether the statement is true or false
Economics
For a given domestic and foreign price level, a decrease in the nominal exchange rate ________ the real exchange rate.
A. may either increase or decrease B. decreases C. offsets any change in D. increases
Economics