If consumers' confidence in the economy rises
A) aggregate demand will shift rightward and the price level will rise.
B) aggregate demand will shift leftward and the price level will fall.
C) aggregate demand will shift rightward and the price level will fall.
D) aggregate demand will shift leftward and the price level will rise.
A
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India's government runs a government budget surplus. If there is no Ricardo-Barro effect, the surplus means that the
A) private supply of loanable funds curve lies to the left of the supply of loanable funds curve. B) private demand for loanable funds curve lies to the left of the demand for loanable funds curve. C) private supply of loanable funds curve is the same as the supply of loanable funds curve. D) private supply of loanable funds curve lies to the right of the supply of loanable funds curve. E) None of the above answers is correct.
As the world economy becomes more integrated through globalization
A. the Fed will find it easier to conduct monetary policy. B. the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy. C. the Fed will have a more difficult time reaching its money supply growth rate targets. D. U.S. interest rates will determine world interest rates.