Everything else held constant, an increase in planned investment expenditure ________ aggregate ________
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
A
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Governments may attempt to protect dairy farmers from low milk prices by:
A. reducing subsidies on the price of milk. B. increasing taxes on dairy farmers. C. setting a minimum price on milk. D. banning the hoarding of milk by households.
According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. As long as counterfeit U.S. currency remains undetected and in circulation, an increase in the U.S
inflation rate would essentially A) decrease the real value of the counterfeit currency. B) increase the nominal value of the counterfeit currency. C) increase the real value of the counterfeit currency. D) decrease the nominal value of the counterfeit currency.
In the short run, macroeconomic analysis focuses on ________, while in the long run, the focus is on ________
A) fiscal policy; monetary policy B) short-run economic growth; population demographics C) unemployment; inflation D) the business cycle; long-run economic growth
What real world complications keep purchasing power parity from being a complete explanation of exchange rate fluctuations in the long run. Explain
What will be an ideal response?