Suppose policy makers want to increase Y and keep NX constant. Which of the following policies would most likely achieve this?
A) an increase in government spending
B) a real depreciation
C) an increase in government spending and a reduction in the real exchange rate
D) a reduction in the real exchange rate
E) encourage the country's trading partners to implement policies that will cause an increase in foreign income (Y)
E
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On the horizontal axis of a graph, generally
A) values increase from left to right. B) values increase from right to left. C) values can be positive and/or negative. D) Both answers A and C are correct.
A collective consumption good may be inefficiently produced by the private sector because _____
a. it is inefficient to raise price above marginal cost b. of free riding problems c. fixed costs are too high d. private producers are greedy
If the Federal Reserve sells $1,000 in bonds and, as a result, the money supply decreases by $2,500, what is the required reserve ratio?
a. 0.4 b. 2.5 c. 0.5 d. 0.1 e. 0.2
The federal government receives more money from ________ than from any other source.
A. individual income taxes B. corporate income taxes C. excise taxes D. sales taxes