08 Jun Question 1)the foreign trade effect states that
Question
1)the foreign trade effect states that if the price level rises in the u.s. while remaining fixed overseas, then foreign from abroad will become relatively __ expensive compared to good in the U.S. and therefore__ the quantity of imports of the U.S. a)less ; decrease B)less;increase c) more ; increase D)more;decrease
2) A decrease in government purchases shifts the ___ curve to the ___
a) AD; left B) AD;right C) AS; Left D) AS;right
3)a tax increase ___ aggregate demand and the shifts the AD curve to the ___
A)decreases;right b)decreases;left c)increases;right d)increases;left
4) The wealth effects states that an increase in the price level will ___ the buying power of saving that people have stored up in bank account and others assets and thereby ___ consumption spending.
a)increase;increase b)decrease;decrease c)increase;decrease
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