If there is an increase in the amount of good B foregone as every additional unit of good A is produced, the PPF between goods A and B would
What will be an ideal response?
be a bowed-outward curve.
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Germany and Japan pay a higher price for raising capital because of
A) having rather illiquid securities markets. B) unresolved stockholder-lender and manager-stockholder conflicts. C) allowing banks to hold substantial ownership shares in large firms. D) shutting large firms out of those securities markets.
The higher the real interest rate, the ________ investment projects firms can profitably undertake, and the ________ the quantity of loanable funds they will demand
A) more; smaller B) more; greater C) fewer; greater D) fewer; smaller
What happens typically to a budget deficit during a recession?
a. It increases because of tax changes. b. It decreases because of spending decreases. c. It decreases automatically. d. It increases automatically.
In the open economy macroeconomic model, the price that balances supply and demand in the market for foreign-currency exchange model is the
a. nominal exchange rate. b. nominal interest rate. c. real exchange rate. d. real interest rate.