In the figure above, the factor responsible for the decline in the interest rate is

A) a decline the price level.
B) a decline in income.
C) an increase in the money supply.
D) a decline in the expected inflation rate.

C

Economics

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An example of a discretionary fiscal stimulus policy is

A) decreasing government expenditure. B) the automatic increase in needs-tested spending during a recession. C) decreasing needs-tested spending. D) cutting taxes. E) induced taxes.

Economics

In 2-input production models, constant returns to scale implies horizontal marginal cost curves.

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

Economics