The initial impact of an increase in government spending is to shift
A. aggregate supply to the right.
B. aggregate demand to the left.
C. aggregate demand to the right.
D. aggregate supply to the left.
Answer: C. aggregate demand to the right.
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Investment demand is downward sloping because
A) an increase in investment demand causes interest rates to fall. B) at lower interest rates, firms will undertake more investment. C) at lower interest rates, firms will undertake less investment. D) none of the above.
The real exchange rate is defined to be the:
A. value of goods in one nation relative to the value the same set of goods in another country. B. rate at which firms in different nations would be willing to exchange goods. C. rate people exchange goods and services in a domestic market. D. value of goods in one nation relative to the value a similar set of goods in another country.
In economics
A) costs are seen as all the previous opportunities B) costs are seen as the next best opportunity C) are measured in monetary units only. D) costs are only fixed.
How much trade involves shipping goods between the fairly similar high-income economies of the United States, Canada, the European Union, Japan, Mexico, and China?
a. Roughly one-fourth b. Roughly one-third c. Roughly one-half d. Roughly one-fifth