Which of the following can be considered an injection into an economy?
a. Imports
b. Investment
c. Aid to foreign countries
d. Saving
e. Taxes
b
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
If the expected value of the U.S. dollar rises, one would expect ________
A) a decrease in the demand for dollars B) an increase in the demand for the dollar C) an increase in U.S. income D) an increase in federal income tax rates
In the event of a recession, the fiscal policy measures favored by most liberals would involve ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is an example of a surplus item on the balance of payments?
A) private gifts to foreign residents B) public gifts to foreign residents C) interest receipts from foreign residents D) purchases of gold from foreign residents