As the economy moves up and to the left along the IS curve, which of the following will occur when exchange rates are flexible?
A) investment spending decreases
B) consumption decreases
C) the domestic currency appreciates
D) all of the above
E) none of the above
D
Economics
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The Baumol-Tobin analysis suggests that an increase in the brokerage fee for buying and selling bonds will cause the demand for money to ________ and the demand for bonds to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Economics
Suppose Jon Stewart of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's opportunity cost as a producer is
A) $1,400,000. B) 1,000,000. C) $400,000. D) $600,000.
Economics