The main international repercussion of either a fiscal expansion or monetary contraction is to

A. raise interest rates and the exchange rate, thereby crowding out net exports.
B. raise interest rates and lower the exchange rate, thereby crowding in net exports.
C. lower interest rates and the exchange rate, thereby crowding in net exports.
D. lower interest rates and raise the exchange rate, thereby crowding out net exports.


Answer: A

Economics

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Maria lives next door to Alice. Alice regularly plays loud music, which often disturbs Maria. Maria went over to Alice's house yesterday and asked her to turn down her music because loud music adversely affects her. Alice has complied. Which of the following best describes the economists' view of what has happened?

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Economics

Which of the following is true?

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Economics

Because of the lack of buyer's information about a perfectly functioning used car:

A. the market will eventually become saturated with high quality cars. B. sellers of perfectly functioning used cars will be more likely to enter the market. C. the buyer will pay less than what it's worth because of the chance that it will be a lemon. D. All of these statements are true.

Economics

Not having to pay for a good leads to:

A. oversupply. B. overconsumption. C. underconsumption. D. irrational consumption.

Economics