An intended goal of contractionary fiscal and monetary policy is
A) an increase in interest rates.
B) an increase in the price level.
C) a decrease in the unemployment rate.
D) a decrease in the level of aggregate output.
Answer: D) a decrease in the level of aggregate output.
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The largest component of the consumer price index is ________.
A. medical care B. transportation C. apparel D. housing
________ means committing oneself to an uncertain future value of one's net worth in terms of home currency.
A. Selling B. Importing C. Hedging D. Speculating
A change in the price of a good ________ its supply curve and ________ a movement along its supply curve
A) does not shift; causes B) shifts; does not cause C) does not shift; does not cause D) shifts; causes E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.
Reaching a Nash equilibrium means that:
A. there is no stable outcome to the game. B. the players will never reach a positive-positive outcome. C. a stable outcome has been reached. D. each player has achieved their highest payoff in the game.