Refer to the diagram below. Cheri's budget line shifts inward from CD to AB. Which statement below is consistent with this shift?
A. Both prices double, while her income also doubles
B. Both prices increase by 20 percent, while her income increases by 15 percent
C. Both prices decrease by 10 percent, while her income falls by 15 percent
D. Both prices decrease by 10 percent, while her income falls by 6 percent
C. Both prices decrease by 10 percent, while her income falls by 15 percent
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Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand. D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
Why have China and India received so much international attention and investment?
What will be an ideal response?
The frequent use of credit cards and easy access to automatic teller machines have caused:
a. the demand for money to increase. b. the money supply in the economy to decrease. c. the price level in the economy to decrease. d. the velocity of money to increase.
An example of direct foreign investment is:
A. a U.S. bank granting a loan to a Guatemalan firm. B. General Motors building an auto production facility in China. C. a U.S. government foreign aid grant to Bangladesh. D. the purchase of debt issued by the Panamanian government.