"The only thing that results from expansionary demand-side fiscal policy is that the price level will rise." The economist who said this most likely believes that
A) there is likely to be a lot of crowding out if government spending rises.
B) the AS curve is vertical.
C) there is unlikely to be much crowding out if government spending rises.
D) investment is interest inelastic.
E) b and c
B
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An example of human capital would be:
A. your computer. B. your writing skills. C. your desk. D. None of these is an example of human capital.
The purpose of the statistical discrepancy line item is to ______.
a. obtain a net balance of zero dollars for the unilateral transfers b. sum the difference between service exports and service imports c. obtain a net balance of zero dollars for the balance of payments d. ensure that the financial account balance is zero dollars
The final market price of imports may not reflect 100% of changes in the real effective exchange rate because:
a. exchange rates in many nations are fixed. b. there are restrictions on capital inflows. c. domestic price distortions, such as markups or taxes, reduce the impact of the exchange rate change. d. the government has instituted price controls.
When an emissions tax is imposed on production of a good, the price will be __________ than it would be in the absence of the tax, and the equilibrium quantity will be __________ :
a. higher, higher b. lower, lower c. lower, higher d. higher, lower