Figure 18-2
In , which of the following would cause the American demand for foreign exchange (pounds) to shift from D1 to D2?
a.
an increase in the U.S. real interest rate
b.
higher inflation in Britain than in the United States
c.
higher income growth in Britain than in the United States
d.
an increased level of vacation travel to Britain by Americans
d
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Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the left. b. Start the analysis in the real goods market with aggregate demand shifting to the right. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
All of the following are variables that can be manipulated to affect fiscal policy, except one. Which is the exception?
What will be an ideal response?
A situation in which the price charged is greater than society's opportunity cost would lead to
A) too little being produced. B) too much being produced. C) an efficient amount being produced. D) marginal cost pricing.
In 2015, the price of peanuts was rising, which led peanut butter buyers to expect the price of peanut butter would rise in the future
Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) an increase in demand for peanut butter; an increase; an increase B) an increase in supply of peanut butter; a decrease; an increase C) a decrease in demand for peanut butter; a decrease; a decrease D) a decrease in supply of peanut butter; an increase; a decrease