In the Keynesian model in the long run, an increase in the money supply will raise
A. the price level but not the level of output.
B. the level of output but not the price level.
C. neither the level of output nor the price level.
D. both the level of output and the price level.
Answer: A
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All the costs of a transaction are referred to as
A) transfer costs. B) transactions costs. C) marketing expenditures. D) accounting costs.
Based on Scenario 6.1 above, if a tariff of 20 percent is placed on imports of dining room tables, and another tariff of 50 percent is placed on imports of wood and parts, then the effective rate of protection on tables made in the United States is
A) 70 percent. B) 50 percent. C) 20 percent. D) 12.5 percent.
Firms need to know the shape of a demand curve to use marginal analysis.
Answer the following statement true (T) or false (F)
Transfer payments are included in the government budget deficit but not included in the government purchases component of GDP
a. True b. False Indicate whether the statement is true or false