The ______ holds that a rise in price level will make domestic goods relatively more expensive, ______ exports and _______ imports.
a. interest rate effect; encouraging; discouraging
b. employment effect; discouraging; encouraging
c. wealth effect; encouraging; discouraging
d. foreign price effect; discouraging; encouraging
d. foreign price effect; discouraging; encouraging
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Does the saving and investment equation imply that a country's national saving must always equal its domestic investment? Explain
What will be an ideal response?
Which of the following facilitates the movement of checks across the country?
a. Board of Governors b. Treasury Department c. Federal Open Market Committee d. Federal Reserve Banks e. Department of Commerce
LAPD needs to increase the size of its police force, and it will cost them $100,000 per year to recruit two full-time officers. The LAPD should ask the mayor to: a. impose an extra charge on citizens who require extra police protection. b. keep the current force and provide less security
c. hire a private firm to provide extra security. d. increase the tax paid by citizens.
Mercantilists perceived trade as a zero sum game
Indicate whether the statement is true or false