A decrease in government expenditure shifts the AD curve ________ and a decrease in taxes shifts the AD curve ________
A) rightward; rightward
B) rightward; leftward
C) leftward; rightward
D) leftward; leftward
C
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It is estimated that if the inflation rate is lowered from 3 percent a year to 0 percent a year, the growth rate of real GDP will rise by ________ percentage points a year
A) 2.3 B) 3.2 C) 1 to 3 D) 0.06 to 0.09 E) 0
In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic money supply increases
A) domestic output, but has no effect on the domestic price level or the nominal exchange rate. B) the domestic price level, but has no effect on domestic output or the nominal exchange rate. C) the nominal exchange rate, but has no effect on domestic output or the domestic price level. D) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
Refer to Scenario 7.1. The total cost to produce 100 cookies is
A) $0.10 B) $0.25 C) $25.00 D) $100.00 E) indeterminate
Which of the following assets would be considered least liquid?
a. A silver coin b. An antique automobile c. A U.S. savings bond d. A debit card e. A certificate of deposit