Under a fixed exchange rate regime, suppose there is a reduction in housing wealth that causes a reduction in consumption. This wealth-induced reduction in consumption will cause
A) a reduction in investment.
B) an increase in net exports.
C) a reduction in imports.
D) all of the above
E) none of the above
D
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If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:
A. A
B. It is likely to be unaffected and stay at point B
C. C
D. D
Elizabeth just finished a long run. The first glass of water was amazing, the second was good but not as good, and after the third she doesn't want any more. This is an example of what concept?
a. consumer surplus b. law of diminishing marginal utility c. elasticity of demand d. law of equilibrium
Lorenz curves tell us about the
A. absolute distribution of income. B. poverty line. C. incidence of malnutrition. D. relative distribution of income.
The introduction of the euro has eliminated currency as a barrier to trade in all European countries.
a. true b. false