Other things being equal, an increase in the money supply causes a(n) __________ in the interest rate and a(n) __________ in investment, which in turn causes a(n) __________ in aggregate demand.
A. increase; decrease; decrease
B. increase; increase; decrease
C. decrease; increase; increase
D. decrease; decrease; increase
Answer: C. decrease; increase; increase
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In the U.S., it is illegal for employers to interfere when workers try to organize unions
a. True b. False Indicate whether the statement is true or false
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.
When you receive this week's paycheck, you can either spend it or save it. The fraction of each additional dollar of disposable income that you ____ is known as your _____.
A. save; marginal propensity to invest B. spend; marginal propensity to consume C. invest; marginal propensity to multiply D. pay as taxes; marginal propensity to spend
Selection bias can result from data samples
A. from people who make different choices. B. that compare groups engaged in different activities. C. that are not random. D. all of the above.