A recessionary gap can be closed with
A) using a contractionary monetary policy.
B) an increase in taxes.
C) a decrease in government purchases.
D) using an expansionary fiscal policy.
Ans: D) using an expansionary fiscal policy.
Economics
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In the case where the spot and forward rates are equal, the currency is said to be selling
A) profitably. B) flat. C) normal. D) risky.
Economics
If Y = A × N × (75 + K/N), where K = 1000, N = 20, and A = 10, what happens if K doubles and N doubles?
A) Y is unchanged. B) Y increases by 50%. C) Y doubles. D) Y quadruples.
Economics