Assume that the U.S. dollar depreciates against the Japanese yen. What is the impact on aggregate expenditures and income?
A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.
A
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If the price level doubles, the
A) nominal demand for money doubles. B) nominal demand for money drops by half. C) real demand for money drops by half. D) real demand for money doubles.
An individual with a diversified stock portfolio consists of
A. stocks of firms listed on the New York Stock Exchange. B. financial assets purchased from several different stock brokers. C. financial assets comprised of different types of firms and locations. D. corporate bonds with varying maturity dates.
Disadvantages of experiments include the fact that:
A. decisions made in the laboratory replicate those made in the real world. B. laboratory experiments introduce influences on decision making that are difficult to measure or control. C. the number of subjects is typically so large, that it is difficult to apply the results to economic behavior in the population. D. decisions made in the laboratory replicate those made in the real world and the number of subjects is typically so large, that it is difficult to apply the results to economic behavior in the population.
Forgetting about the money that's irretrievably gone and instead focusing on the marginal costs and benefits of future options, is the lesson of which of the following?
A. Marginal utility B. Sunk costs C. Marginal analysis D. Budget constraints