The IS curve will shift to the right if:
a. the government deficit decreases.
b. consumer confidence decreases.
c. the MPC decreases.
d. taxes decrease.
e. the money supply increases.
D
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If the U.S. real exchange rate is 125, the U.S. price index is 140, and the Japanese price index is 165, what is the yen to dollar exchange rate?
A) 106.06 B) 125.65 C) 147.32 D) 184.80
Assume the cross price elasticity of demand between peanut butter and grape jelly is negative
a. Does the cross price elasticity coefficient indicate that peanut butter and grape jelly are substitutes or complements? Why? b. Describe the effect associated with an increase in the price of peanut butter on the the demand for both peanut butter and grape jelly.
The long-run Phillips curve is downward-sloping
a. True b. False
Which of the following is the formula for the intra-industry trade (IIT) share in a product's total trade?
A. 1 - [ |X + M| / (X - M)] B. 1 - [ |X - M| / (X + M)] C. 1 - |X - M| D. 1 - (X + M)