If the level of government spending rises and simultaneously there is a fall in the money stock, we definitely know that
a. income will rise.
b. the change in the interest rate will be ambiguous.
c. income will fall.
d. the interest rate will fall.
e. None of the above
E
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Minimum-price laws designed to preserve competition
A) offer the certainty of lower prices in order to eliminate the possibility of higher prices. B) offer the certainty of higher prices in order to eliminate the possibility of higher prices. C) offer the possibility of higher prices in order to eliminate the certainty of higher prices. D) offer the sellers more competition among themselves.
In the above figure, if the economy is at point A, which of the following is TRUE?
A) There is a recessionary gap. B) There is an inflationary gap. C) Point A is the long-run equilibrium point. D) None of the above answers are correct.