If businesses expect the economic activity to expand
A) the planned investment function relating investment to the interest rate will shift to the left.
B) the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve.
C) the planned investment function relating investment to the interest rate will steepen.
D) the planned investment function relating investment to the interest rate will shift to the right.
D
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Higher tariffs and quotas cause a country's currency to ________ in the ________ run, everything else held constant
A) depreciate; short B) appreciate; short C) depreciate; long D) appreciate; long
Suppose the central bank implements a monetary expansion that is not fully anticipated by financial markets. Given this information, we would expect
A) stock prices to rise. B) stock prices to fall. C) stock prices to remain unchanged. D) an ambiguous effect on stock prices. E) none of the above