An increase in foreign incomes
A) increases aggregate demand in the United States.
B) increases the aggregate quantity demanded in the United States.
C) decreases the aggregate quantity demanded in the United States.
D) decreases aggregate demand in the United States.
A
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A firm's marginal cost is the increase in its total cost divided by the increase in its
A) quantity of labor. B) average cost. C) output. D) average revenue.
When cost externalities exist, an optimal equilibrium can be attained if the government
A) restricts production. B) levies a tax for the difference between private costs and social costs. C) prohibits production. D) All three above E) Both A and B
The major reason for the twists, turns, and spurts in the economy's growth path, according to real business cycle theorists, is
a. interest rate fluctuations b. wars c. housing shortages d. a climatic change e. year to year changes in the pace of technological change
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. e. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).