Which of the following situations will cause the supply of British pounds to rise in the foreign exchange market?
a. The price level in the United States rises faster than the price level in the United Kingdom.
b. The real GDP in the United States grows while the real GDP in the United Kingdom remains constant.
c. The interest rate in the United Kingdom falls while the interest rate in the United States remains constant.
d. The tax rate in the United States rises while the tax rate in the United Kingdom does not change.
.C
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Which of the following is a stock?
A. Saving B. Income C. Wealth D. Consumption
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
The principal-agent problem is a problem
A) of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat. B) that exists when a person (principal) has more information about the task than the agent he hires to perform the task. C) caused by agents pursuing their own interests rather than the interests of the principals who hired them. D) caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
Refer to Exhibit 2-6. Which graph best depicts the consequence of a large-scale natural disaster?
 ANSWER 7.png)