One reason that we might observe a rise in net capital outflow could be interest rates in the:
A. rest of the world are declining, relative to the U.S.
B. U.S. and the world are all increasing.
C. U.S. and the world are all declining.
D. U.S. are declining, relative to the rest of the world.
Answer: D
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Given the proportion of a consumer’s income spent on various goods, the demand for is likely to be the most price inelastic.
If the prices of both goods and income increase by the same percentage, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price. B) The budget line rotates outward from the intercept on the axis of the good that did not change in price. C) The budget line shifts outward without a change in slope. D) Nothing.
For the money expansion process to produce the maximum potential multiplier effect
A. all loans from banks have to be redeposited throughout the banking system. B. the Fed has to sell government bonds to back up the loans. C. all loans of a given bank have to be deposited in that bank. D. the required reserve ratio has to be 100 percent.
If the demand curve for a firm is downward-sloping, its marginal revenue curve
A) will lie above the demand curve. B) will lie below the demand curve. C) is the same as the demand curve. D) is horizontal.