In a simple Keynesian model, a decrease in income leads to a decrease in
A) consumption.
B) investment.
C) the price level.
D) the money supply.
A
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In the foreign exchange market, the demand for dollars decreases and the demand curve shifts leftward if the
A) U.S. interest rate differential increases. B) U.S. exchange rate falls. C) U.S. interest rate differential decreases. D) U.S. exchange rate rises. E) expected future exchange rate rises.
A dominant strategy is a
A) last-move strategy. B) losing strategy. C) player's best strategy when he can make the first move. D) player's best strategy regardless whatever strategies are adopted by his rivals.
Which of the following can occur, when the government imposes a price control on a market?
(a) Excess supply of a good/service. (b) Excess demand for a good/service. (c) Price is not at its equilibrium level. (d) All of the above.
Over the past two decades, the United States has
A. generally had, or been very near to a trade balance. B. had trade deficits in about as many years as it has trade surpluses. C. persistently had a trade deficit. D. persistently had a trade surplus.