Which of the following will shift the aggregate demand curve to the left, ceteris paribus?
A) an increase in interest rates
B) an increase in disposable income
C) an increase in expected profits for firms
D) an increase in net exports
Answer: A
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Economists have observed that fiscal policy can be implemented very quickly while monetary policy is much slower to enact
a. True b. False Indicate whether the statement is true or false
An increase in quantity supplied
a. results in a movement downward and to the left along a fixed supply curve. b. results in a movement upward and to the right along a fixed supply curve. c. shifts the supply curve to the left. d. shifts the supply curve to the right.
Which of the following statements is true?
A. The larger a nation's marginal propensity to import, the smaller the open-economy multiplier. B. The larger a nation's marginal propensity to export, the smaller the open-economy multiplier. C. The smaller a nation's marginal propensity to import, the smaller the open-economy multiplier. D. The larger a nation's marginal propensity to consume, the smaller the open-economy multiplier.
A decrease in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ________ relative to the foreign currency.
A. become undervalued B. become overvalued C. depreciated D. appreciated