Suppose that country A pegs its currency to that of country B. Now suppose that there is an adverse demand shock in country A. Country B is more likely to cooperate and increase its money supply in response to country A's adverse demand shock when:
A) country B's output is below its preferred level.
B) country B is experiencing high rates of inflation.
C) country B wants country A to devalue its currency.
D) country A is experiencing high rates of inflation.
Ans: A) country B's output is below its preferred level.
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Based on the figure above, the firm's marginal product curve slopes upward at levels of output between ________ and the firm's average product curve slopes upward at levels of output between ________
A) 4.0 and 7.0; 4.0 and 7.0 B) 0 and 7.0; 4.0 and 7.0 C) 4.0 and 7.0; 0 and 4.0 D) 0 and 4.0; 0 and 7.0 E) More information is needed to answer the question.
________ taxes are taxes paid when purchasing specific goods such as alcohol, tobacco, and gasoline
A) Property B) Payroll C) Wealth D) Excise
The aggregate demand curve:
a. would be little affected by a technological advancement. b. shifts to the right when spending decreases. c. shifts to the left when there is a decrease in taxes. d. cannot move independently of the aggregate supply curve. e. shifts to the right when there is an expectation that future income will fall.
If the AD curve shifts to the left as a result of a decrease in the money supply growth rate:
A. the economy will temporarily depart from its long-run inflation rate. B. the economy will permanently depart from its long-run growth rate. C. the economy will temporarily depart from its long-run growth rate. D. the economy will adjust immediately and never depart from its long-run growth rate.