The international trade response to a contractionary monetary policy will cause aggregate demand to shift ____ and aggregate supply to shift ____
a. outward, outward
b. inward, outward
c. outward, inward
d. inward, inward
b
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A basic problem with the infant-industry argument is that
a. most industries need protection when they are mature, not when they are first established. b. the amount of the tariff is unlikely to have much impact on the success of an infant industry. c. political pressure will likely prevent the withdrawal of the tariff when the industry matures. d. domestic consumers will continue to buy the foreign products anyway, regardless of the tariff.
The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve-deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve-deposit ratio do not change, if the Central Bank of Macroland wishes to increase the money supply to 3,000, then it should conduct an open-market ________ government bonds.
A. sale of 50 B. sale of 500 C. purchase of 250 D. purchase of 50
Suppose Vincent is willing to pay $350 to buy a new bike. Loss aversion implies that if Vincent had just bought the bike, you would:
A. have to pay him less than $350 to part with it. B. have to pay him exactly $350 to part with it. C. not be able to get him to part with it for any amount of money. D. have to pay him more than $350 to part with it.
the multiplier makes the economy less sensitive to changes in autonomous expenditure
a. true b. false