Which of the following actions would cause the aggregate demand curve to shift to the left?

A) an increase in consumer spending caused by a cut in the personal income tax rate
B) an increase in government spending caused by increased spending on highways and bridge construction
C) a decrease net export spending caused by an appreciation of the home currency
D) an increase in exports caused by an increase in economic activity in the European Union

C

Economics

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Suppose the marginal propensity to consume in an economy is 0.9. What would be the Keynesian multiplier in this economy?

Select one: a. 0.1 b. 2 c. 5 d. 10

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A tariff does not raise any revenue for the government if:

A) imports exceed exports. B) exports exceed imports. C) exports equal imports. D) it reduces imports to zero.

Economics