Which of the following is the most likely response to an increase in the U.S. real interest rate?
a. a London bank purchases a U.S. bond instead of a Japanese bond it had considered purchasing
b. U.S. firms decide to buy more capital goods
c. a U.S. citizen decides to put less money in his savings account than he had planned.
d. All of the above are consistent.
a
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The real-nominal principle can be stated as
A) only final goods and services should be counted in GDP. B) only the manufacture of real goods is production. C) what matters to people is the purchasing power of money or income. D) production generates income.
If the monthly unemployment rate increase mentioned in the Application wound up being a permanent and not temporary change, the best economic decision by the committee would most likely be to
A) decrease the money supply to stimulate the economy. B) not change monetary policy. C) decrease the money supply to slow the economy down. D) increase the money supply to stimulate the economy.
The demand for labor curve shows the relationship between _________
A. the quantity of labor employed and firms' profits B. all households' willingness to work and the real wage rate C. the quantity of labor businesses are willing to hire and the real wage rate D. the labor force and the real wage rate
Refer to above figure. In the absence of trade, how many Widgets does this country consume?
What will be an ideal response?