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True, False or Uncertain (Macroeconomics)

 
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sakura santa



Joined: 22 Jun 2018
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Location: United States

PostPosted: Fri Jun 22, 2018 6:51 am    Post subject: True, False or Uncertain (Macroeconomics) Reply with quote

Hey Guys

I have some true, false or uncertain questions


1. If the government runs a budget deficit and the private sector invests more than it saves there must be a balance of payments surplus.
2. An increase in disposable income increases the average propensity to save.
3. In a Keynesian economy with proportional taxes, if the rate of indirect tax is increased and the rate of direct tax is decreased by the same amount there will be no effect on national income.
4. The larger is the marginal propensity to consume the steeper is the IS curve.
5. An increase in the price level shifts the LM curve to the left.
6. In a fixed price IS/LM model with lump sum direct tax, the balanced budget multiplier is less than one.
7. If the non-bank public decides to hold a higher ratio of cash to deposits the interest rate will fall.
8. In an IS/LM economy an increase in government expenditure increases the price of bonds.
9. In a classical economy an increase in the money supply has no effect on the interest rate.
10. If unemployment exceeds vacancies, wage rates must be falling.

Thanks in advance for your help.

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Sakura Santa
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