A tariff ______ the domestic price of a good and ______ the quantity sold.
A. increases; increases
B. decreases; decreases
C. increases; decreases
D. decreases; increases
C. increases; decreases
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If the current account has a positive balance of $100 and the capital and financial account has a negative balance of $90, there will be ________ in official reserves of ________
A) a decrease; $10 B) an increase; $10 C) an increase; $190 D) a decrease; $190
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
a. The price level and real GDP will both rise. b. The price level will not change, but real GDP will increase. c. The price level will rise, but real GDP will not change. d. Both the price level and real GDP will not change.
M2 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Large repurchase agreements. d. Money market mutual accounts. e. Small time deposits.
Fretonia and Libstien are the same except Fretonia has a larger capital stock. Both countries undertake policies that raise their saving rates to the same higher level. We would expect that
a. both countries would have permanent increases in their growth rates, but the increase would initially be larger in Fretonia. b. both countries would have permanent increases in their growth rates, but the increase would initially be smaller in Fretonia. c. both countries would have temporary increases in their growth rates, but the increase would be larger in Fretonia. d. both countries would have temporary increases in their growth rates, but the increase would be smaller in Fretonia.