Under a fixed exchange rate regime, contractionary fiscal policy will tend to cause which of the following?
A) a reduction in imports
B) a reduction in net exports
C) an increase in investment
D) all of the above
A
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By referring to Figure 7-1, an increase in the money stock
a. shifts the LM schedule to the right from LM0 to LM1. b. shifts the LM schedule to the left from LM0 to LM2. c. leaves the LM curve unchanged at LM0. d. shifts neither the IS nor the LM schedule.
If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal. B) produce less of the good than is socially optimal. C) produce the socially optimal quantity of that good. D) produce zero output.
Which of the following is false?
A) Even if a corporation is not currently issuing bonds, you could still buy a bond directly from the corporation. B) Bonds that are rated AAA from Standard and Poor's have received the highest rating possible. C) A bond that is rated in the D category indicates that the bond issuer cannot pay off the bond. D) It is possible to buy a bond from someone who purchased and still holds the bond he bought from the corporation at an earlier date.
If Utopia has a closed economy, the number of cases of tile consumed each is ________ per year, and if it has an open economy the number of cases of tile consumed is ________ per year. 
A. 300; 200 B. 300; 450 C. 450; 200 D. 200; 450