Public saving in the economy can be increased by
A) raising taxes. B) raising government spending.
C) raising transfer payments. D) lowering taxes.
A
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In a liquidity trap, the
A) IS curve is vertical. B) IS curve is horizontal. C) LM curve is vertical. D) LM curve is horizontal.
If the Federal Reserve was to buy U.S. dollars on the foreign exchange market, a likely result will be: a. a rightward shift in the dollar supply curve
b. at least a temporary decline in the exchange value of the U.S. dollar. c. at least a temporary increase in the exchange value of the U.S. dollar. d. both (a) and (b)
If people begin to hold more cash, the money-multiplier process will
A. increase in intensity. B. remain the same. C. decrease in actual size. D. cause larger amounts of excess reserves.
The demand for all carbonated beverages as a whole is likely to be ________ the demand for Dr. Pepper
A) more elastic than B) perfectly elastic compared to C) less elastic than D) perfectly inelastic compared to