If the dollar appreciates while foreign income rises:
A. the U.S. AD curve would likely remain unchanged.
B. the U.S. AD curve would likely shift to the left.
C. what happens to the U.S. AD curve is unclear.
D. the U.S. AD curve would likely shift to the right.
Answer: C
Economics
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The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0. B) the growth rate of real GDP. C) the growth rate of the velocity of money. D) the growth rate of the price level.
Economics
If a person is taxed $1,000 on an income of $10,000 . taxed $2,000 on an income of $20,000 . and taxed $3,000 on an income of $30,000 . this person is paying a(n):
a. progressive tax. b. regressive tax. c. proportional tax. d. poll tax. e. excise tax.
Economics