To stop a speculative attack interest rates must be ________, which will ________ aggregate demand.
A. increased; increase
B. decreased; decrease
C. increased; decrease
D. decreased; increase
Answer: C
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A decrease in the supply of sugar increases the price of sugar from $1.00 a packet to $1.25 a packet. The quantity decreases from 100 packets a day to 80 packets a day. The price elasticity of demand of sugar is ________
A) 0.75 B) 0.5 C) 1.0 D) 1.25
A key contribution of Ronald Coase is that he pointed out that private transactions are efficient when the number of parties involved is small
A) and when property rights are well defined and transactions costs are low. B) and when property rights do not exist. C) and that property rights are irrelevant to the existence of externalities. D) and when corporations are not greedy.
Investment spending includes spending on
A) changes in business inventories. B) stocks. C) food. D) transfer payments.
In 2017 about 51% of personal income in the United States came from
A. transfer payments. B. profits. C. property income. D. wages and salaries.