The economy experiences an increase in the price level and an increase in real domestic output. Which is a likely explanation?
A. Interest rates have increased.
B. Net exports have increased.
C. Wage rates have fallen.
D. Business taxes have increased.
Answer: B
Economics
You might also like to view...
Asymmetric information before a transaction takes place generates the problem of
A) moral hazard. B) adverse selection. C) bank runs. D) irrational behavior.
Economics
Which of the following will not result in a shift in the demand curve for the US dollar?
a. an increase of in the income of US residents b. a decrease in the expected rate of inflation in the US c. an increase in the dollar/Eruo exchange rate d. an increase in interest rates in the US e. a decrease in interest rates in the Euro zone
Economics