Refer to the above figure. A movement from B to D would be a result of
A. an increase in labor productivity.
B. an increase in government expenditures.
C. an increase in the marginal income tax rate.
D. an increase in the quantity of money in circulation.
Answer: A
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"Trade liberalization should precede capital account liberalization." Discuss
What will be an ideal response?
A federal policy that leads to an increase in aggregate supply is likely to result in: a. lower levels of employment
b. an increase in aggregate demand. c. a higher price level. d. lower levels of real GDP. e. an economic expansion.
Ceteris paribus, the greater the foreign holdings of the U.S. treasury securities:
a. the lower the value of the U.S. dollar in the foreign exchange market. b. the higher the interest rate in the U.S. c. the greater the level of U.S. imports. d. the lower the wealth of the U.S. citizens. e. the lower the tax rate in the U.S. economy.
In the short run,
a. spending determines income, but not the other way around b. income determines spending, but not the other way around c. spending determines the interest rate, but not the other way around d. spending determines income, and income determines spending e. spending determines the productivity, and productivity determines spending.