Every point on an open-economy IS curve represents:
A) combinations of interest rates and the supply of money, which result in equilibrium in the money market.
B) combinations of interest rates and levels of production, which result in equilibrium in the goods market.
C) combinations of interest rates and levels of production, which result in equilibrium in the money market, the goods market, and the forex market.
D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.
Ans: D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.
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What determines the value of goods and services for GDP?
a. market prices b. quality of product c. stock rating d. investment
Adam Smith advocated laissez-faire because he believed it was in the interest of:
A. society as a whole. B. capitalists, whom he regarded as the most dynamic and progressive element in society. C. the proletariat, who would receive higher wages. D. the government, which would profit from higher taxes.