Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase taxes.
B) raise interest rates.
C) increase oil prices.
D) increase the money supply and decrease the interest rate.
E) increase government spending.
A
Economics
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In the classical model, the level of business investment was a function of
a. only the expected profitability of investment projects. b. only the real interest rate. c. both the expected profitability of investment projects and the real interest rate. d. only the nominal interest rate. d. None of the above
Economics
A utility-maximizing consumer would not consume more of a good if
a. marginal utility increases as more is consumed b. total utility diminishes as more is consumed c. MU/P < 1 d. MU/P < 1 e. MU/P = 1
Economics