Suppose the development of the European Union leads to greater investment in Europe. You'd expect
A) a recession in Europe.
B) a decline in the world real interest rate.
C) a rise in the current account in Europe.
D) an increase in the world real interest rate.
D
You might also like to view...
The Keynesian approach assumes that
A) the economy is self-regulating. B) there is no unemployment in the economy. C) the price level is fixed. D) the government budget is always in deficit.
If a macroeconomist studying the causes of unemployment asserts that a particular change in technology will cause the rate of unemployment to decrease by ten percent, then this macroeconomist is at which step in the process of developing an economic
model? A) Identify the endogenous variables. B) Develop a model. C) Compare the model with the data. D) Identify the exogenous variables. E) Conduct prediction and policy analysis.
The major goal of social regulation is
A) a better quality of life through a less polluted environment, better working conditions, and safer and better products. B) to make sure that firms are not earning monopoly profits. C) to make sure that prices are kept low enough so that every person can purchase the good. D) to make sure that the firm produces at the socially optimal point of production.
Which of the following correctly describes the effects of a decrease in net taxes?
a. Disposable income increases, consumption decreases, and saving decreases. b. Disposable income increases, consumption increases, and saving increases. c. Disposable income decreases, consumption increases, and saving increases. d. Disposable income decreases, consumption decreases, and saving decreases. e. There is no effect on either disposable income, consumption, or saving.