The foreign exchange rate is the:
A. Real rate of interest on long-term government bonds in other nations
B. Amount of one nation's currency that can be purchased with a unit of another nation's currency
C. Value of imports of the goods and services and the exports of goods and services in an economy
D. Rate at which money serves as a medium of exchange for goods and services that would typically be bartered
B. Amount of one nation's currency that can be purchased with a unit of another nation's currency
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If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?
a. -$300 million. b. -$200 million. c. -$100 million. d. -$50 million.
If the ____ is/are fixed, a change in nominal income is equivalent to a change in real income
a. price level b. interest rates c. tastes and preferences d. future expectations
A country that has demonstrated the ability to catch up to the technology leaders by investing in both physical and human capital is called
a. a dependent economy. b. a converging economy. c. an advancing economy. d. a predatory economy.
The demand for a resource rises as
A. its productivity rises and the relative prices of substitutable resources rises. B. its productivity rises and the prices of substitutable resources falls. C. its productivity falls and the relative prices of substitutable resources falls. D. its productivity falls and prices of substitutable resources falls.