Which of the following factors would increase aggregate demand in the goods and services market?
a. an decrease in stock prices
b. an increase in the real interest rate
c. a decrease in real incomes abroad
d. increased optimism on the part of consumers and businesses
D
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According to the capture hypothesis of regulation
A) regulation favors producers over consumers because the producers were able to pay off the regulators. B) regulation eventually favors producers over consumers because the producers have more at stake than individual consumers. C) regulation benefits the regulators and the legislators who support the regulation by enabling them to obtain favors from both producers and consumers. D) regulation benefits the consumers over producers because the number of consumers is greater than the number of producers, giving the consumers more political clout.
When the exchange rate fluctuates around a fixed central target, allowing for a moderate amount of fluctuation, while tying the currency to the target central rate, the exchange rate is under:
a. a horizontal band. b. a crawling peg. c. a managed float. d. an independent float. e. a currency board.
Buchanan and Wagner assert that there is a political bias toward contractionary fiscal policy and not expansionary fiscal policy
Indicate whether the statement is true or false
Absolute advantage is the basis for gains from trade
Answer the following statement(s) true (T) or false (F)