Suppose the MPC = 0.60 and government purchases increase by $40 billion. In Keynesian theory, which of the following is true?
A) The TE curve shifts downward by $40 billion and total spending decreases by $40 billion.
B) The TE curve shifts upward by $40 billion, and total spending increases by $40 billion.
C) The TE curve shifts downward by $40 billion, and total spending decreases by $100 billion.
D) The TE curve shifts upward by $40 billion, and total spending increases by $100 billion.
D
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Fiat money is generally issued by
A) brokerage firms. B) private banks. C) major multinational corporations. D) central banks.
If the case study on U.S. / China trade is correct in its analysis of factor abundance,
A) Chinese capital owners should see their income rise as trade increases. B) U.S. skilled labor inputs should see their incomes fall as trade increases. C) U.S. capital owners should see their income fall as trade increases. D) Chinese unskilled labor should see their income rise as trade increases.