Refer to Figure 16-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase government spending.
B) decrease government spending.
C) increase oil prices.
D) lower interest rates.
E) increase taxes.
A
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Economic freedom and economic prosperity are
A) positively correlated. B) negatively correlated C) not correlated. D) inconsistent with human rights.
If a bank had the reserve requirement of 10 percent and excess reserves of $2,000, the largest loan it could legally extend would be: a. $200
b. $1,800. c. $2,000. d. $20,000.
If a nation has "cheap" labor, a. it can still benefit from trade
b. it is unlikely to have a comparative advantage in the production of goods that are highly capital intensive. c. it cannot have a comparative advantage in everything. d. all of the above are true.
A share of Ford Motor Company stock is an example of:
A. a financial instrument without risk. B. a non-standardized financial instrument. C. a non-standardized financial instrument since their prices can differ over time. D. a standardized financial instrument.