In the long run, most economists agree that a permanent increase in government spending leads to
A) no decrease in private spending.
B) a decrease in private spending by less than the amount that government spending increased.
C) a decrease in private spending by the same amount that government spending increased.
D) a decrease in private spending by more than the amount that government spending increased.
Answer: C
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Three-wheel cars made in North Edsel are sold for 5000 pounds. Four-wheel cars made in South Edsel are sold for 10,000 marks. The real exchange rate between North and South Edsel is four three-wheel cars for three four-wheel cars
The nominal exchange rate between the two countries is A) 0.50 marks/pound. B) 0.66 marks/pound. C) 1.50 marks/pound. D) 2.00 marks/pound.
Is there any common characteristic shared by government-inhibited goods and government-sponsored goods? Explain briefly
What will be an ideal response?