Suppose the government cuts taxes. We would expect interest rates to ________ and the dollar to ________ in foreign exchange markets

A) rise; appreciate B) fall; depreciate C) rise; depreciate D) fall; appreciate

A

Economics

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The marginal productivity principle demonstrates that distribution under a capitalist system is ethically valid.

Answer the following statement true (T) or false (F)

Economics

Use the following table to answer the next question.Interest RateAsset Demand for Money (billions)7%$0610052004300If the money supply equals $300 billion dollars and the transaction demand for money equals $200 billion dollars, the equilibrium interest rate is

A. 6%. B. 7%. C. 4%. D. 5%.

Economics