The expected effects of fiscal contraction are
A. higher real interest rates.
B. exchange rate depreciation.
C. increased trade deficit.
D. All of these responses are correct.
Answer: B
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Marginal revenue is the change in:
a. total profit brought about by selling one more unit of output. b. price brought about by selling one more unit of output. c. total revenue brought about by selling one more unit of output. d. output brought about by a $1 change in product price. e. average revenue brought about by selling one more unit of output.
Laqueta buys a new GPS device for her car for $135 . She receives consumer surplus of $25 on her purchase if her willingness to pay is
a. $25. b. $110. c. $135. d. $160.
Which of the following can reduce the level of long-run economic growth?
A. A decrease in deficit spending by the government. B. An increase in government safety regulations. C. An increase in the savings rate. D. Government enforced property rights.
The discount rate is the rate that the
A. Treasury pays on savings bonds. B. Fed charges member banks. C. Fed charges on government securities. D. Fed charges the Treasury for sales of securities.