Suppose the U.S. interest rate is 6 percent and the world interest rate is 5 percent. The U.S. interest differential is
A) -1 percent.
B) 1.2 percent.
C) 1 percent.
D) -0.83 percent.
C
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Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of raising another 100 cows?
A) 5.0 tons of potatoes B) 3.0 tons of potatoes C) 1.25 tons of potatoes D) 100 cows E) 1.0 ton of potatoes
Assume the economy is initially in equilibrium with real GDP equal to potential GDP
Other things equal, if the economy enters a recession and there are no automatic stabilizers, the IS curve would shift to the ________, and the shift would be equal to ________. A) right; decline in investment spending B) left; decline in investment spending C) right; decline in investment spending times the multiplier D) left; decline in investment spending times the multiplier
The price that we observe in the market is
A) the law of demand. B) a substitute. C) the money price. D) the relative price.
Which of these is an advantage of money as a store of value? a. It can generate high interest income
b. It can facilitate hassle-free international exchange. c. It can be easily liquidated. d. It can signal a nation's economic health. e. It can increase potential output.