The supply curve shifts rightward from S0 to S2 when the U.S. interest rate ________ and foreign interest rates are unchanged. The supply curve shifts rightward from S0 to S2 when the expected future exchange rate ________
A) falls; falls
B) rises; rises
C) falls; rises
D) rises; falls
E) None of the above answers is correct because the factors mentioned lead to movements along the demand curve and not to shifts of the demand curve.
A
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Government spending shrank the most in _____ relative to GDP between 1997 and 2016
a. Canada b. Australia c. Germany d. Spain e. the U.K.
Which of the following is a positive statement?
A. Because many adults cannot afford to go to college, tax credits for tuition should be introduced. B. When a country imports more than it exports, its balance of trade is negative. C. The price of drugs in the United States is too high. D. It only makes sense to offer financial aid for students who cannot pay some of their tuition. E.The President of the United States ought to be elected by a direct vote of the American people rather than the Electoral College
Automatic stabilizers
A. are a form of nondiscretionary fiscal policy. B. include income taxes and cash assistance to the poor. C. include in-kind assistance. D. All of the choices are true of automatic stabilizers.
Governments may intervene in private markets through
A) rationing by political power. B) price floors. C) price ceilings. D) all of the above.