If people expect nominal interest rates to be higher in the future, the expected return to bonds ________, and the demand for money ________
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
C
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In? 2003, China's control of the value of the yuan became an economic and political issue for the U.S.? because:
A) increased U.S. exports to China. B) decreased U.S. exports to China. C) increased China imports from the U.S. D) none of the above.
Assuming a long-run aggregate supply curve, a decrease in taxes results in ________ in output and ________ in price level
A) no change; an increase B) an increase; no change C) a decrease; a decrease D) no change; a decrease
Contractionary fiscal policy may have a larger effect in reducing aggregate demand in an open economy than a closed economy
a. True b. False Indicate whether the statement is true or false
Self-interest
A) relates strictly to material well-being, such as a person's stock of wealth at a point in time. B) is measured entirely based on an individual's income, whether earned from labor or inherited. C) is inconsistent with economic analysis, which suggests that self-interest is irrational. D) can involve any action that makes a person feel better off, such as charitable contributions.