The goal of expansionary fiscal policy is to shift the _________ curve to the _________
Fill in the blank(s) with the appropriate word(s).
aggregate demand; right
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In the figure above, the shift in the supply curve for U.S. dollars from S0 to S1 could occur when
A) the U.S. interest rate rises. B) foreign interest rates rise. C) the expected future exchange rate falls. D) the current exchange rate rises.
A monopoly:
A. is constrained because its decisions cannot affect market price. B. is constrained by demand. C. faces a horizontal demand curve. D. is constantly threatened by the entry of new firms.
All of the following influence the government's decisions to allow various tax deductions, tax exemptions, tax credits, and tax write-offs, except
a. matters of fairness b. incentives to work c. incentives to save d. incentives to invest e. incentives to vote
The law of demand refers to the
a. decrease in price that can be expected as more units of a product are demanded. b. increase in price that results from an increase in demand for a good of limited supply. c. inverse relationship between the price of a good and the quantity demanded. d. increase in the quantity of a good available when its price increases.