How does an increase in taxes affect the expenditure schedule?
A. It causes movement to the left along the schedule.
B. It causes the schedule to shift upward.
C. It causes movement to the right along the schedule.
D. It causes the schedule to shift downward.
Answer: D
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Suppose that the interest rate available to you on a long-term bond is 4 percent. If you hold $1,000 of your wealth in currency instead of in the form of a bond, the annual opportunity cost is
A) $0.04. B) $4. C) $40. D) $400.
The demand for foreign currency in the United States is based on the demand for:
a. domestic goods and services. b. domestic exports. c. gold. d. foreign goods and services. e. U.S. dollars.
Declines in business inventories enter national income accounts: a. negatively in the consumption category. b. negatively in the investment category. c. negatively in the net export category
d. positively in the profits category.
Producer surplus is the
What will be an ideal response?