In the model discussed in Chapter 3, why do we assume G and T are exogenous?
What will be an ideal response?
It is based on two arguments: First, government do not behave with the same regularity as consumers or firms, so there is no reliable rule we could write for G or T. Second, treating G and T as exogenous help explore the implications of alternative spending and tax decisions.
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________________, which produced ______________, is commonly cited as the first American factory
a. The Oliver Evans Mill; flour b. The Almy, Slater, Brown Mill; yarn and thread c. The Boston Manufacturing Company; cotton d. The Whitney Armaments Firm; guns
When the central bank of some country prints large quantities of money, that county's currency loses value both in terms of the goods and services it buys and in terms of the amount of foreign currencies it can buy
a. True b. False Indicate whether the statement is true or false