When Mexico suffered from capital flight in 1994, the U.S. real interest rate
a. rose and the real exchange rate of the dollar appreciated.
b. rose and the real exchange rate of the dollar depreciated.
c. fell and the real exchange rate of the dollar appreciated.
d. fell and the real exchange rate of the dollar depreciated.
c
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A decline in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right B) rise; IS; right C) fall; IS; left D) fall; LM; left
Above-normal returns on stock investments can be expected by investors who
A) possess insider information. B) are wealthy enough to hold the stock of many different companies in their portfolios. C) are risk seeking. D) concentrate their investments in one or two stocks.
Harry needs to hire a lawyer but does not know how to find a good one. The lawyer is a(n)
A) experience good. B) credence good. C) logo good. D) search good.
The graph above shows the relationship between consumption and income. The ratio LM/PL would be a measure of the:
A. Marginal propensity to consume
B. Marginal propensity to save
C. Average propensity to consume
D. Average propensity to save