A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand?
a. AD would increase
b. AD would decrease.
c. AD would stay the same.
d. AD could either increase or decrease, depending on which change was of a greater magnitude.
b
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Veronica deposited $1,000 into an account two years ago. The first year she earned 7 percent interest; the second year she earned 5 percent. How much money does Veronica have in her account today?
a. $1,133.31 b. $1,120.00 c. $1,123.50 d. None of the above are correct to the nearest cent.
Which of the following is the best example of a quota?
A. a tax placed on all small cars sold in the domestic market B. a limit imposed on the number of men's suits that can be imported from a foreign country C. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits D. a $100-per-car fee imposed on all small imported cars