MACROECONOMICS-W/MINDTAP
15th Edition
ISBN: 9781305361409
Author: Gwartney
Publisher: CENGAGE L
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Question
Chapter 2, Problem 1CQ
To determine
Explain if the transaction can improve the welfare of people.
Expert Solution & Answer
Explanation of Solution
In an economy, ‘J’ will get $5,000 by trading used car to ‘S’. In this case, by getting $5,000, ‘J’ can spend their entire $5,000 in the market and this leads to improve the welfare of more people in an economy.
Thus, the given statement is ‘False’.
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Tutorials-Principles of Economics
m health care
In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
Group of answer choices
Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so income must rise to maintain equilibrium in the money market
Raises the interest rate, so that income must rise to maintain equilibrium in the money market.
Chapter 2 Solutions
MACROECONOMICS-W/MINDTAP
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