« previous next »

Author Question: Suppose a country has no trade with other countries and people can borrow as many funds as they want ... (Read 31 times)

abern

  • Hero Member
  • *****
  • Posts: 533
on: Jun 30, 2018
Suppose a country has no trade with other countries and people can borrow as many funds as they want at the current interest rate. An increase in the price level will generate
 
  A) a decrease in total planned real expenditures because of the real-balance effect.
  B) a decrease in total planned real expenditures because the indirect effect will be stronger than the real-balance effect.
  C) a decrease in total planned real expenditures because the real-balance effect will be stronger than the indirect effect and the open-economy effect.
  D) a decrease in total planned real expenditures because of the open-economy effect and the indirect effect.

Question 2

Fiscal policy
 
  A) uses the tool of interest rates to stimulate private savings.
  B) uses the tools of taxation and spending in an effort to address inflation and unemployment.
  C) uses the tool of the exchange rate to discourage imports.
  D) uses the tool of business regulation to increase economic efficiency.


welcom1000

  • Sr. Member
  • ****
  • Posts: 298
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Cesarean Section Rates, Selected Countries Cesarean Section Rates, Selected Countries
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
In the 1800s, most people were poor, and formal education beyond the first several grades was a ... In the 1800s, most people were poor, and formal education beyond the first several grades was a ...
The energy set-point view that is the basis of many people’s thinking about hunger and eating. The energy set-point view that is the basis of many people’s thinking about hunger and eating.
Desired Fertility versus Total Fertility Rate in Developing Countries Desired Fertility versus Total Fertility Rate in Developing Countries
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Cardiac conductile cells

For a complete list of videos, visit our video library