When taxes increase, the interest rate
a. increases, making the change in aggregate demand larger.
b. increases, making the change in aggregate demand smaller
c. decreases, making the change in aggregate demand larger.
d. decreases, making the change in aggregate demand smaller.
d
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A major cause of environmental degradation in developing countries is
(a) debt for nature swaps. (b) poverty. (c) a lack of public transportation. (d) land reform.
Customs unions and free trade areas are identical in the manner in which member countries treat imports from nonmember countries
Indicate whether the statement is true or false
In the new classical view, an anticipated decrease in government spending would be expected to
a. lower output and the price level. b. lower output but leave the price level unchanged. c. leave output unchanged and raise the price level. d. leave output unchanged and lower the price level. e. leave both output and the price level unchanged.
In the Keynesian model with a variable money wage and variable price level, an increase in the money supply lead to a rise in all of the following except
a. price level. b. output. c. real wage. d. level of employment. e. all of these rise