Refer to Figure 19-1. Which of the following would cause the change depicted in the figure above?
A) European productivity rises relative to American productivity.
B) The U.S. removes a quota on wristwatches from the European Union.
C) Americans increase their preferences for goods produced in the EU relative to American goods.
D) The price level of goods produced in the EU increases relative to the price level of goods produced in the United States.
D
Economics
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The multiplier applies to:
A. investment but not to net exports or government spending. B. investment, net exports, and government spending. C. increases in spending but not to decreases in spending. D. spending by the private sector but not by the public sector.
Economics
The interest rate effect states that _____________.
Fill in the blank(s) with the appropriate word(s).
Economics