A higher price level causes
A) the C + I + G + X curve to shift u
B
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The Federal Reserve fears that the United States economy is growing too slowly and is stuck in a recession. To move the economy back to its potential GDP, the most likely policy action for the Fed is to ________ the federal funds and thus ________
A) raise; increase aggregate demand B) raise; decrease aggregate demand C) lower; increase aggregate supply D) lower; decrease aggregate supply E) lower; increase aggregate demand
For a firm with market? power, the price effect is the? ________.
An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?
a. domestic sales of HD motorcycles increase and foreign sales of HD motorcycles increase b. domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles increase c. domestic sales of HD motorcycles increase and foreign sales of HD motorcycles decrease d. domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles decrease e. only manufacturers who produce traded goods are affected
Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that country
a. discourage market exchange. b. protect people and their property and enforce contracts even-handedly. c. abolish private property rights. d. all of the above.