If Americans decide to buy more South African diamonds, what is the effect in the foreign market?
A. It will increase demand for U.S. dollars.
B. It will decrease demand for U.S. dollars.
C. It will increase supply of U.S. dollars.
D. It will decrease supply of U.S. dollars.
Answer: C
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Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of ________ aimed at increasing real GDP and employment
A) an automatic stabilizer B) a transfer payment C) discretionary fiscal policy D) contractionary fiscal policy
If by chance, the level of investment that producers intend to make equals what consumers actually save out of their income, it follows that what producers intend to produce for consumption is precisely what consumers intend to consume. This set of equalities is shown as
a. Ci = Y – Ii b. Ci = Y – S c. Y = C + S d. Ii = S e. I = Y