The following appeared in a Florida newspaper a week after a hurricane hit the state. "Floridians are relieved that the storm produced no fatalities but homeowners face weeks, if not months, of rebuilding. Matters are made worse by the soaring prices of plywood and other building materials that always follow in a hurricane's path. Complaints of profiteering and price gouging have not deterred firms from raising their prices by over 100 percent." Which of the following offers the best explanation for the price increases referred to in the article?
A) The hurricane caused an increase in the demand for building materials.
B) The hurricane created an artificial shortage of building materials.
C) There was a reduction in supply as firms shipped plywood and other materials to locations not affected by the storm.
D) The hurricane reduced the number of suppliers of building materials.
A
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Which of the following statements about the ripple effects of monetary policy is FALSE? Monetary policy can
A) raise the federal funds rate, thereby decreasing the quantity of money, raising the real interest rate, and decreasing investment. B) lower the federal funds rate, thereby increasing the supply of loanable funds, and lowering the exchange rate. C) lower the federal funds rate, thereby lowering the real interest rate and increasing aggregate demand. D) raise the federal funds rate and shift the aggregate demand curve leftward. E) raise the federal funds rate, thereby raising the real interest rate and increasing potential GDP.
The investment rate is the percentage of total output allocated to
A. Saving. B. The production of new plants, equipment, and structures. C. Education and training for the workforce. D. Consumer retirement accounts.
The relationship between two variables is positive when _____ and the relationship between two variables is negative when _____
A. one variable increases and the other? decreases; one variable decreases and the other increases B. one variable increases and the other? increases; one variable decreases and the other decreases C. one variable decreases and the other? increases; one variable increases and the other increases D. one variable increases and the other? increases; one variable increases and the other decreases
Of the dozen of studies that study the effect on wages, most of the studies show that immigration has ________ effect on wages of the native worker as a whole.
A. a relatively small B. zero C. relatively large D. very large, almost 100%