Other things the same, if the U.S. interest rate rises, U.S. assets become ____ attractive. So, desired net capital outflow _____. This change in net capital outflow, shifts the __________ curve in the market for foreign-currency exchange to the ______
Fill in the blank(s) with correct word
more, falls, supply, left
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Refer to Figure 10.8. Other things equal, an increase in expected inflation would best be represented by
A) a movement from point A to point C. B) a movement from point A to point D. C) a shift from LM1 to LM2. D) a shift from LM2 to LM1.
The president of the United States promises that the nation's economy will simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?
A) if the United States were producing at a point on its production possibilities curve B) if the United States were producing inside its production possibilities curve C) if the United States were producing to the right of its production possibilities curve D) None of the above; the production possibilities curve must shift to the right.
Which of the following price indexes is designed to measure changes in the prices of goods and services purchased by a typical individual?
A) Producer Price Index B) Gross Domestic Product (GDP) Deflator C) Index of Leading Economic Indicators D) Consumer Price Index
Which of the following examples is characteristic of a perfectly competitive market?
a. The green beans grown in Oregon have a higher market price than the ones grown in California. b. Some of the green beans grown in Oregon are better than the ones grown in California. c. All the green beans grown in Oregon are better than the ones grown in California. d. The green beans grown in Oregon have the same quality as the ones grown in California.