A decrease in the interest rate will cause a(n):
a. Decrease in the transactions demand for money
b. Increase in the transactions demand for money
c. Decrease in the amount of money held as an asset
d. Increase in the amount of money held as an asset
d. Increase in the amount of money held as an asset
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Between 1850 and 1950 the productivity of the average American farm worker
A. declined. B. remained about the same. C. doubled. D. quadrupled.
The figure above shows the market for tires. The figure shows that the government has imposed a tax of ________ per tire and that ________ pay most of the tax
A) $30; buyers B) $40; buyers C) $30; sellers D) $60; sellers E) $60; buyers
If Slovenia were a large country in world trade, then if it imposes a large set of tariffs on its imports, this must
A) decrease the internal price of imports below the world market rate. B) cause retaliation on the part of its trade partners. C) harm Slovenia's real income. D) improve Slovenia's real income. E) improve the real income of its trade partners.
Using Figure 11.1, which fiscal policy action would increase aggregate demand from AD1 to AD3?
A. A decrease in government spending. B. A decrease in government spending matched by an equal decrease in taxes. C. A decrease in transfer payments. D. A decrease in taxes.