Contractionary fiscal policy will lead to a(n)
A) decrease in the supply of dollars in the foreign exchange market.
B) fall in interest rates.
C) increase in the demand for dollars in the foreign exchange market.
D) reduction in exports.
Ans: B) fall in interest rates.
Economics
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If the price of capital declines, the consequent output effect would be:
A. greater, the more elastic the demand for the product. B. greater, the less elastic the demand for the product. C. negative. D. of consequence only if capital and labor are used in fixed proportions.
Economics
Taxation can promote good social policy while minimizing economic inefficiency.
Answer the following statement true (T) or false (F)
Economics