If a U.S. firm buys tulips from a Dutch firm and the Dutch firm uses the dollars it gets to buy U.S. stocks, the U.S. trade balance ________ and the U.S. financial account ________
A) rises; rises
B) rises; falls
C) falls; falls
D) falls; rises
D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Explain the negative long-term effects that statistical discrimination in the labor market can have on the incentives to invest in education and skills
What will be an ideal response?
Without contracts, what type of transactions would occur?
A) forward purchases. B) lateral purchases. C) spot transactions. D) side bars.
If an economy operates at a short-run equilibrium output that exceeds its long-run capacity, which of the following will be most likely to direct the economy toward full employment?
a. Improvements in technology will shift the LRAS curve to the right. b. Resource prices will increase, causing the SRAS curve to shift to the left. c. The unemployment rate will increase, causing the economy's aggregate supply curve to shift to the right. d. Interest rates will decline, shifting the aggregate demand curve to the right.