In the situation shown on this graph, what will be the result of the fiscal policy on employment?
a. The unemployment rate will fall.
b. The unemployment rate will rise.
c. The unemployment rate will remain unchanged.
d. The unemployment rate will move unpredictably.
a. The unemployment rate will fall.
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Explain how the money market determines the equilibrium interest rate
What will be an ideal response?
"It would be an undue hardship to require people whose income is below $15,000 per year to pay income taxes." This statement reflects which of the following principles for a tax?
a. Benefits-received. b. Inexpensive-to-collect. c. Ability-to-pay. d. Fairness of contribution.
What is the source of the demand for dollars in the market for foreign-currency exchange?
According to the article "Why Gold?', silver may be used as money. One problem with using silver as money is that
a. silver is too abundant. b. silver tarnishes over time. c. it is not a precious metal. d. it has a high melting point.