Other things the same, which of the following could explain a rise in Sweden's net capital outflow?
a. interest rates on Swedish bonds rise
b. the probability of default on Swedish bonds rises
c. Sweden enacts a law reducing taxes on income earned by foreign-owned businesses operating in Sweden
d. None of the above are correct.
b
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Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________
A) rises; increases B) rises; does not change C) falls; does not change D) falls; decreases E) falls; increases
Refer to Figure 6-8. Identify the two goods which are substitutes
A) Good X and Good Z B) Good Y and Good Z C) Good X and Good Y D) It is not possible to distinguish any relationship among the goods.
To eliminate a recessionary gap the Fed typically uses __________ monetary policy, and to eliminate an inflationary gap the Fed typically uses __________ monetary policy
A) expansionary; expansionary B) expansionary; contractionary C) contractionary; contractionary D) contractionary; expansionary
If the price elasticity of supply is 1.3, supply is:
A. unaffected by price changes. B. inelastic. C. unit elastic. D. elastic.