Which of the following changes shifts the AD curve up and to the right?

A. A decrease in the future marginal productivity of capital
B. An increase in income taxes
C. A rise in the nominal money supply
D. An increase in the risk on nonmonetary assets


Answer: C

Economics

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Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon

If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100 B) 80 C) 120 D) 200

Economics

Unemployment associated with industries where the demand for labour regularly rises and falls at different times of the year, is best described as:

(a) Cyclical unemployment. (b) Seasonal unemployment. (c) Frictional unemployment. (d) Real Wage unemployment.

Economics

A U.S. trade deficit will cause all of the following phenomena except:

A. future interest and profits from assets sold to foreigners must be paid to them. B. U.S. assets will have to be sold to foreigners. C. production must eventually increase. D. future consumption must decrease to pay for the current excess of imports over exports.

Economics

An import ban on shrimp increases the price of shrimp, decreases the quantity of shrimp, and therefore domestic producers will gain at the expense of domestic consumers.

Answer the following statement true (T) or false (F)

Economics