Why do firms enter into a collusive agreement?
A) To increase profits
B) To reduce prices
C) To reduce market concentration
D) To increase market supply
A
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In a large open economy like the United States, an increased government budget deficit which reduces national saving
A) reduces investment and improves the current account balance. B) reduces investment and reduces the current account balance. C) has no effect on investment, but reduces the current account balance. D) has no effect on either investment or the current account balance.
Identify the correct statement about changes in money supply.
a. A decrease in money supply causes interest rates to fall b. A decrease in money supply causes investment spending to increase. c. A decrease in money supply causes gross domestic product to increase. d. A decrease in money supply causes investment spending to decrease. e. A decrease in money supply causes aggregate expenditure to increase.
The savings rate in Josiane’s country has been very low for many years. Describe how this has likely impacted the country’s growth rate. Provide brief examples.
What will be an ideal response?
If UIP holds, the interest rate is 4%, and the foreign currency is expected to appreciate by 3%, then the foreign interest rate is approximately
a) 1% B) 3% C) 7% D) none of the above