An unexpected rise in the LEI should send bond prices __________ and stock prices __________
A) up; up
B) up; down
C) down; up
D) down; down
C
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A rise in the domestic interest rate leads to capital outflows and makes the currency depreciate
a. True b. False Indicate whether the statement is true or false
in a market economy?
A. Resources are distributed equal across the all possible users. B. resources move to higher valued uses in respond to change in price. C. Resources usage is independent of the price. D. Most resources are distributed by the government. E. All of the above.
An input is indivisible if:
A. it cannot be increased to produce a larger quantity of output. B. it cannot be used as a substitute for other inputs in the production process. C. it is sufficiently inexpensive to purchase that firms will want to buy as much as they can. D. it cannot be scaled down to produce a smaller quantity of output.
What effect would we expect in the market for loanable funds if some people discover a new business opportunity that requires investment?
A. Supply will shift right and demand will not change. B. Demand will shift right and supply will not change. C. Demand will shift left and supply will not change. D. Supply will shift left and demand will not change.