Other things equal, when Europeans want to buy more grains from the United States:
a. U.S. imports will increase.
b. European exports will increase at every level of domestic income.
c. U.S. exports will increase at every level of domestic income.
d. the U.S. balance of payments will show a deficit.
e. U.S. consumption spending will fall.
c
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In the new classical model, the aggregate supply schedule depends on
a. the expected level of the money stock. b. the expected price level. c. the expected values of fiscal policy variables and other possible determinants of aggregate demand. d. Both a and c e. All of the above
In dealing with their financing needs, developing countries have found that the inflation tax provides:
A. neither a short-run nor a long-run solution. B. a short-run solution but not a long-run solution. C. a long-run solution but not a short-run solution. D. both a short-run and a long-run solution.