If a currency appreciates, a country’s net exports
A. fall and AD increases.
B. rise and AD increases.
C. fall and AD decreases.
D. rise and AD decreases.
Answer: C
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Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the equilibrium quantity of wapanzo beans will be
A) 2 million pounds. B) 4 million pounds. C) 6 million pounds. D) 8 million pounds.
Taxes affect market participants by increasing the price paid by the buyer and received by the seller
a. True b. False Indicate whether the statement is true or false
If the firm is maximizing profits, it is producing ____ units of output and charging a price of ____.
A. OF; ON
B. OF; OL
C. OG; ON
D. OG; OM
Aggregate-demand aggregate supply model with AD shifted to the right. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
a. a decrease in income taxes b. an increase in the required reserve ratio c. an open market purchase of Treasury bills d. an open market sale of Treasury bills