If a reduction in government borrowing leads to lower real interest rates in the United States,
a. U.S. investors will decrease their investments abroad.
b. U.S. exports will decrease relative to imports.
c. the inflow of loanable funds from abroad will moderate the fall in the real rate of interest.
d. the dollar will depreciate in the foreign exchange market.
D
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If the price of Coca-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the value of the price elasticity of demand for Coca-Cola is:
A. unit elastic. B. elastic. C. inelastic. D. perfectly inelastic. E. perfectly elastic.
From the data in the above table, when the economy is in short-run equilibrium, if aggregate demand does not change, then as time passes the
A) short-run aggregate supply curve shifts rightward. B) short-run aggregate supply curve shifts leftward. C) long-run aggregate supply curve shifts rightward. D) long-run aggregate supply curve shifts leftward.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Real GDP b. GDP price index c. Required reserve ratio d. Quantity of real credit per time period e. Quantity of currency per time period
A purely competitive firm will be willing to produce even at a loss in the short run, as long as:
A. The loss is smaller than its total variable costs B. The loss is smaller than its marginal costs C. The loss is smaller than its total fixed costs D. Price exceeds marginal costs