Expansionary monetary policy:
A. lowers interest rates, increasing investment and decreasing net exports.
B. raises interest rates, raising both investment and net exports.
C. lowers interest rates, increasing both investment and net exports.
D. raises interest rates, decreasing both investment and net exports.
Answer: C
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The marginal propensity to save is
a. the change in saving divided by the change in income. b. the change in income divided by the change in saving. c. saving divided by income. d. income divided by saving. e. saving divided by consumption.
In 2001, Alex Rodriguez, a baseball player, was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect
a. True b. False Indicate whether the statement is true or false
The most important factor that influences total spending is
a. the interest rate b. real wealth c. expectations regarding future income d. the income tax rate e. real disposable income
Mutually beneficial trade is impossible when different persons have different preferences about goods and services
a. True b. False Indicate whether the statement is true or false