A lower domestic price level should
A. decrease real wealth and consumption.
B. increase net exports.
C. decrease desired investment.
D. none of these.
Answer: B
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If velocity were constant, as assumed by the pre-Keynesian version of the quantity theory, then a 10% change in the money supply would cause
A) a proportionate change in prices. B) a proportionate change in output. C) the sum of proportionate change in P and Y equals 10%. D) the net difference of proportionate change in P and Y equals 10%.
A common resource is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
Which of the following statements is true with respect to nonrenewable natural resources?
a. With proper management, more natural resources can be created. b. The economy will never run out of the resource since it can always find new supplies as the price rises. c. Economists can predict with reasonable accuracy when the supply will be depleted. d. Before the last unit is taken from the earth, the economy is likely to already have abandoned it and switched to another. e. Water is an example of a nonrenewable natural resource.
Since World War II,
A. air pollution has worsened in most U.S. cities. B. many new pollutants have been introduced or identified. C. the federal government has reduced its reliance on economic incentives as a means of reducing pollution. D. the United States has polluted more per capita than China and India.