Which of the following is likely to occur if OPEC increases the amount of oil it supplies and domestic energy prices fall, ceteris paribus?
A. Aggregate supply will decrease or shift to the left.
B. Aggregate supply will increase or shift to the right.
C. Aggregate demand will increase or shift to the right.
D. Aggregate demand will decrease or shift to the left.
B. Aggregate supply will increase or shift to the right.
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What gives money value under a fiat system?
A) Fiat money is also a commodity. B) The supply of fiat money is controlled by the government. C) Fiat money is backed by gold. D) Fiat money is the same as Treasury bonds.
A depreciation of the Mexican peso relative to the U.S. dollar would ________ Mexican firms that are exporting goods to the United States and would ________ Mexican firms that have borrowed in U.S. dollars
A) help; help B) help; hurt C) hurt; help D) hurt; hurt
When Fed policy is being used to offset an inflationary gap, which of the following variables increases as a result? a. Aggregate demand. b. Investment
c. Net Exports. d. Interest rates.
Which of the following statements is correct?
a. Both tax avoidance and tax evasion are legal. b. Both tax avoidance and tax evasion are illegal. c. Tax avoidance is legal, whereas tax evasion is illegal. d. Tax avoidance is illegal, whereas tax evasion is legal.