In the Keynesian model, an increase in government spending increases
A) the money supply by an equal amount.
B) the money supply by a multiple amount.
C) aggregate demand by an equal amount.
D) aggregate demand by a multiple amount.
D
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Which of the following is true of tariffs?
A) Tariffs are special taxes levied on imports. B) Tariffs reduce the volume of exports. C) Tariffs decrease the prices of imports. D) Tariffs encourage international trade.
________ and ________ may provide an explanation for stock market bubbles
A) Overconfidence; social contagion B) Underconfidence; social contagion C) Overconfidence; social isolationism D) Underconfidence; social isolationism
In the Classical model, a decrease in saving will result in saving being __________ than investment which will cause the interest rate to __________
A) greater; rise B) greater; fall C) less; rise D) less; fall
If a seller in a competitive market chooses to charge more than the going price, then
a. the sellers' profits must increase. b. the owners of the raw materials used in production would raise the prices for the raw materials. c. other sellers would also raise their prices. d. buyers will make purchases from other sellers.