An increase in investment spending would cause the FE line to
A) shift to the right.
B) shift to the left.
C) remain unchanged.
D) remain unchanged if Ricardian equivalence holds; otherwise, shift to the right.
C
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If in the long run, any government policy that increases exports
A) also increases imports. B) decreases imports. C) has no impact on imports. D) makes imports become negative.
Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:
A) the scientific method. B) the economic way of thinking. C) making choices at the margin. D) the fallacy of false cause.
The supply of money increases when the public buys government securities from commercial banks.
Answer the following statement true (T) or false (F)
Which of the following assets is most liquid?
A) money B) bond C) savings account D) stock