If the AD and AS curves intersect in the upward-sloping segment of the AS curve, and then taxes increase, we should expect to see the price level
a. rise and real GDP to rise
b. rise and real GDP to fall
c. rise and the unemployment rate to fall
d. fall and real GDP to rise
e. fall and the unemployment rate to rise
E
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Each of the HPAE promoted manufactured exports
Indicate whether the statement is true or false
The current price of a government bond is $920. The bond pays $90 in interest this year. At the end of the current year, the bond matures, and the principal of $1,000 is repaid. What is the return to the holder of this bond?
A) 1 percent B) 8 percent C) 9 percent D) 17 percent
All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory. B) It assumes demand is known with certainty. C) It assumes demand is spread evenly over a time period. D) It accounts for changes in interest rates.
When the price level falls
a. people want to hold less money. b. the interest rate falls. c. investment spending rises. d. All of the above are correct.