The belief that the U.S price level will rise in the future will tend to cause, other things the same ________
A) no change in the value of the U.S. dollar
B) an increase in the value of the U.S. dollar
C) no change in the value of the U.S. dollar in the short-run
D) a decrease in the value of the U.S. dollar
D
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What is marginal utility and what is the law of diminishing marginal utility?
What will be an ideal response?
The Malthusian population theory
A. was eventually dismissed for its pessimism and failure to take into account technological advances in agriculture and food production. B. failed because contrary to Malthus' argument, agricultural production is not subject to diminishing returns. C. was not borne out in low-income countries because "population checks" (war, famine, etc.) kept population growth down while real GDP growth increased. D. states that the root cause of underdevelopment is unchecked population growth.
If MPC = 0.75 (and there are no income taxes) when G increases by 100, then the IS curve for any given interest rate shifts to the right by:
What will be an ideal response?
Adam Smith believed all of the following EXCEPT
A. never attempt to make at home what it will cost more to make than to buy. B. what makes sense in the conduct of a private family's economic endeavors also makes sense in those of a nation. C. a nation will gain if its citizens trade among themselves, but it will probably lose if it trades with other nations. D. specialization and exchange benefited both individuals and nations.