After trade opens, the short run impact on the income of the specific factor that is relatively scarce will be
A) a decrease in its income.
B) an increase in its income.
C) no change in its income.
D) indeterminate, income effects are not possible to know.
A
Economics
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When the Fed changes money supply by selling government securities, the interest rate will
A) fall unless the LM curve is horizontal. B) fall unless the IS curve is vertical. C) rise if the LM curve is vertical or upward sloping. D) remain constant if the LM curve is vertical.
Economics
If European economies experience a period of sustained recession and the United States does not, what will happen in the United States?
a. an increase in aggregate supply b. a decrease in aggregate supply c. a decrease in aggregate demand d. an increase in aggregate demand
Economics