In the figure above, a single-price unregulated monopoly sets a price equal to

With everything else the same, which of the following would increase the demand for U.S. dollars in the foreign exchange market?

I. a rise in the U.S. interest rate II. a fall in interest rates in foreign countries III. a rise in the expected future exchange rate A) I only B) I and II only C) I and III only D) I, II, and III

Suppose that when income taxes are reduced by $400 billion, households increase consumption by 80% of the resulting change in disposable income. Suppose also that the multiplier is 2. At a given price level, the aggregate demand curve shifts to the right by

A) $320 billion. B) $400 billion. C) $640 billion. D) $800 billion.