The expected effects of fiscal contraction are
a. higher real interest rates.
b. exchange rate depreciation.
c. increased trade deficit.
d. All of the above are correct.
b
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Which statement is true?
A. Productive efficiency has never been achieved. B. The U.S. economy achieved productive efficiency from mid-1997 through mid-2001. C. The U.S. economy achieved productive efficiency from 1980 to 1997. D. The U.S. economy generally attains productive efficiency.
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, Ralph's opportunity cost of selling a truck is selling:
A. 4 cars. B. 1/4 of a car. C. 3 cars. D. 1/3 of a car.
U.S. bank notes have no intrinsic value and yet are widely accepted as a medium of exchange. This is a result of:
a. Gresham's law. b. the use of money as a store of value. c. the fiduciary monetary system. d. the valuation of currency as commodity money. e. the gold and silver reserves of the Federal government that backs the currency.
One example of one-shot inflation occurs when the SRAS curve shifts leftward
Indicate whether the statement is true or false