Describe the effects of contractionary fiscal policy by the domestic government on output, the real interest rate, and net exports in both the domestic and foreign country, using a Keynesian model
What will be an ideal response?
Domestic country: output falls, real interest rate falls, and net exports rise
Foreign country: output falls, real interest rate falls, and net exports fall.
Economics
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According to Say's Law, supply creates its own demand
a. True b. False
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The sum of all the individual demand curves for a product is called
a. income demand. b. equilibrium demand. c. complementary demand. d. market demand.
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The liquidity of an asset refers to the ability of the asset to be converted into cash.
Answer the following statement true (T) or false (F)
Economics
Suppose price decreases from $27.00 to $13.00. Using the mid-point formula, the percentage change in price is:
A. 0.7 = 70 percent. B. 14 percent. C. - 0.7 = - 70 percent. D. - 0.35 = - 35 percent.
Economics