If the price level in the United States increases, domestic goods will become relatively more expensive than foreign goods. Consumers will import more and reduce the quantity of domestic goods and services they buy
a. True
b. False
Indicate whether the statement is true or false
True
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All of the following would increase the growth rate of the economy EXCEPT
A) raising the saving rate. B) stimulating research and development. C) discouraging international trade. D) None of the above answers is correct because they all would increase the growth rate.
The quantity of reserves supplied increases as interest rates rise because
a. the Treasury borrows more at higher interest rates. b. consumers don't want to borrow as much so more money is left in banks. c. as interest rates rise, banks fear losses so they decrease lending. d. banks find it more profitable to loan out excess reserves to other banks.
A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm's average variable cost but greater than the firm's average fixed cost
a. True b. False Indicate whether the statement is true or false
Which of the following is considered to be an investment in the national income accounts?
A. Increases in inventories of unsold goods B. Purchases of Treasury bills C. Money deposited in a bank D. Purchases of land