In the open-economy macroeconomic model, if the supply of loanable funds shifts right, then
a. net capital outflow increases so the demand for dollars in the market for foreign-currency exchange shifts right.
b. net capital outflow increases so the supply of dollars in the market for foreign-currency exchange shifts right.
c. net capital outflow decreases so the demand for dollars in the market for foreign-currency exchange shifts left.
d. net capital outflow decreases so the supply of dollars in the market for foreign-currency exchange shifts right.
b
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A monopolistic competition is a market structure where:
a. a large number of firms compete in a market and sell non-identical products b. a small number of firms, perhaps just two or three, sell all of the output in a market. c. a large number of firms compete in a market and sell identical products. d. a firm produces and sells all of the output—for which there are no close substitutes—in the market.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
The law of diminishing marginal utility is the reason for upward sloping supply curves
a. True b. False Indicate whether the statement is true or false
In Europe, birth rates have fallen as the stork population decreased. This is likely a. a normative statement
b. confusing correlation and causation. c. the fallacy of composition. d. all of the above