Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be relatively ________ and real GDP to be relatively ________

A) lower; higher B) higher; higher C) lower; lower D) higher; lower

B

Economics

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If we take into account transfer payments (TR) when we derive the saving and investment relationship, the saving and investment equation becomes

A) S = I + NFI + TR. B) S + TR = I + NFI. C) S = I + NFI. D) S = I + NX - TR.

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Economics

Figure 11-3


In Figure 11-3, which line represents the change in the consumption schedule caused by an increase in the residential property tax?

a.
C1 in graph (a)

b.
C2 in graph (a)

c.
C1 in graph (b)

d.
C2 in graph (b)

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Economics