The IS curve would unambiguously shift up and to the right if there were
A) an increase in both government purchases and corporate taxes.
B) an increase in both government purchases and the expected future marginal product of capital.
C) an increase in the expected future marginal product of capital and a decrease in expected future output.
D) a decrease in both corporate taxes and the expected future marginal product of capital.
B
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If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar. b. the dollar price of the Korean won (KRW) has risen by 10 percent. c. the percentage change in the dollar per Korean won exchange rate is 6 percent. d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment. e. the dollar has depreciated 16 percent against the Korean won.
An increase in unemployment will cause this year's production possibilities curve to shift inward toward the origin
Indicate whether the statement is true or false