Refer to the graph above. If U.S. citizens flock to Canada for summer vacations and buy more Canadian goods and services, then the:
A. The supply curve will shift left
B. The demand curve will shift right
C. The price of U.S. dollars in Canadian dollars will rise
D. The price of U.S. dollars in Canadian dollars will fall
D. The price of U.S. dollars in Canadian dollars will fall
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Creative destruction means that
A) economic growth can only be sustained if capital depreciates rapidly. B) firms develop new products that replace old products in the economy, thereby encouraging economic growth. C) research and development should only be financed if research and development is incremental (a result of making small changes to existing products). D) knowledge capital can be created through a system of government subsidies for education and research and development.
Inflation targets can increase the central bank's flexibility in responding to declines in aggregate spending
Declines in aggregate ________ that cause the inflation rate to fall below the floor of the target range will automatically stimulate the central bank to ________ monetary policy without fearing that this action will trigger a rise in inflation expectations. A) demand: tighten B) demand; loosen C) supply; tighten D) supply; loosen
If an increase in government spending causes an increase in government borrowing, this could induce
A. an increase in interest rates, which would cause private domestic investment to fall. B. an increase in interest rates, which would cause private domestic investment to rise. C. an increase in interest rates but no effect on private domestic investment. D. a decrease in interest rates, which would cause private domestic investment to rise.
An increase in accrued wages during the accounting period represents an increase in cash.
a. true b. false