Suppose the government decided to ease monetary policy, then increase taxes. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output.
A. lower; decrease
B. lower; increase
C. have an ambiguous effect on; increase
D. lower; have an ambiguous effect on
Answer: D
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Refer to the table above. If each country were to reduce production of its comparative disadvantage good by 1 unit, world output of wine would rise by
A) 1.5 units. B) 2 units. C) 3 units. D) 3.5 units.
How many U.S. dollars does a U.S. importer need to pay for 100,000 yen worth of stereo equipment when the price of 1 yen is $0.008?
a. $125 million b. $1.25 million c. $80,000 d. $1,250 e. $800
As the world economy grew during the 1920s, the gold standard proved to be:
A) a real problem because the quantity of gold could not keep pace with economic expansion, resulting in severe deflation. B) a boon to importers and exporters. C) highly inflationary. D) well-suited to new methods of transferring gold stocks between nations.
What is the marginal revenue of producing the third unit?No. units producedTotal RevenueTotal Costs0001100502180110325018042902705310380
A. 0 B. 70 C. 90 D. 250