Which of the following shifts aggregate demand to the left?
a. an increase in the price level.
b. households decide to save a larger fraction of their income.
c. an increase in net exports.
d. Congress passes a new investment tax credit.
b
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Comparing M1 and M2 we know that
A) M1 is larger because it contains currency. B) M2 is approximately equal to M1. C) M2 is larger because it contains M1 and other assets. D) M2 is larger because it contains more liquid assets than does M1.
Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1
This slope means that A) a change in x is associated with a bigger change in y. B) a change in x is associated with a smaller change in y. C) a change in x is associated with no change in y. D) a change in x is associated with an equal change in y.
Which of the following investments is most ideal for a lender?
a. An investment that yields a nominal interest of 6 percent per year in a country that faces an inflation of 2 percent per year b. An investment that yields a nominal interest of 4 percent per year in a country that faces an inflation of 2 percent per year c. An investment that yields a nominal interest of 200 percent per year in a country that faces an inflation of 200 percent each year d. An investment that yields a nominal interest of 50 percent per year in a country that faces an inflation of 70 percent each year
The tax cuts of 2008 were valued at approximately one percent of GDP.
Answer the following statement true (T) or false (F)