In the Keynesian model,
a. the autonomous expenditure multiplier is lower than the tax multiplier.
b. the autonomous tax multiplier is positive and large.
c. the autonomous tax multiplier is larger (in absolute value) than the tax multiplier.
d. the tax multiplier is equal to 1.
e. none of the above.
C
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Which of the following statements is correct?
A. The demand for capital is derived from the demands for outputs. B. The demands for output are derived from the demand for capital. C. The demand for capital is derived from the demand for rent. D. The demand for rent is derived from the demand for capital.
Higher U.S. interest rates cause the value of the dollar to
A) rise, making U.S. goods relatively cheaper on world markets. B) fall, making U.S. goods relatively cheaper on world markets. C) rise, making U.S. goods relatively more expensive on world markets. D) fall, making U.S. goods relatively more expensive on world markets.
If a transaction in the balance of payments of Country A enters the foreign exchange market, then it is fair to say that:
a. Actually by definition, transactions in a nation's balance of payments cannot enter into the foreign exchange market. b. Uses of funds in Country A's balance of payments are supplies of Country A's currency in the foreign exchange market. c. Uses of funds in Country A's balance of payments are demands for Country A's currency in the foreign exchange market. d. Sources of funds in Country A's balance of payments are demands for foreign currencies in the foreign exchange market.
The law of demand states that, other things equal, an increase in
a. price causes quantity demanded to increase. b. price causes quantity demanded to decrease. c. quantity demanded causes price to increase. d. quantity demanded causes price to decrease.