If interest rates increase, what is most likely to happen to the total expenditure schedule?
a. It will increase because G increases.
b. It will decrease because I decreases.
c. It will decrease because (X - IM) decreases.
d. It will increase because I increases.
b
Economics
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For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A) market demand decreases. B) market demand increases. C) marginal cost increases. D) none of the above: insufficient information to answer.
Economics
The use of foreign exchange reserves to keep exchange rates constant over time is called
A) a fixed exchange rate system. B) the Bretton Woods system. C) a fiscal fix. D) a floating exchange rate system.
Economics