Contractionary fiscal policy is enacted when the overall effect of decisions about taxation and spending is to:
A. increase aggregate demand.
B. increase aggregate supply.
C. reduce aggregate demand.
D. reduce aggregate supply.
Answer: C
Economics
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We would expect the euro to appreciate when there is a __________ shift in the euro demand curve or a __________ shift in the euro supply curve
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
Economics
If, in addition to the least squares assumptions made in the previous chapter on the simple regression model, the errors are homoskedastic, then the OLS estimator is
A) identical to the TSLS estimator. B) BLUE. C) inconsistent. D) different from the OLS estimator in the presence of heteroskedasticity.
Economics