The Federal Reserve has just purchased bonds in the market, carrying out open market operations. In the short run in the Keynesian model, this would cause the foreign real interest rate to ________ and foreign output to ________
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
A
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At the peak of a business cycle, the
A) cyclical unemployment rate is positive. B) unemployment rate is above the natural unemployment rate. C) frictional unemployment rate is zero. D) unemployment rate is below the natural unemployment rate. E) natural unemployment rate is negative.
Binary variables
A) are generally used to control for outliers in your sample. B) can take on more than two values. C) exclude certain individuals from your sample. D) can take on only two values.
Which of the following examples shows a resource being used?
a. Japan exports cameras. b. Wilson produces tennis racquets. c. Jessica earns $50 dollars. d. Adam adds vanilla to the cookie dough.
When the interest rate rises, people are:
A. more likely to borrow, that is, sell a financial asset. B. less likely to borrow, that is, purchase a financial asset. C. less likely to borrow, that is, sell a financial asset. D. more likely to borrow, that is, purchase a financial asset.