The fact that central bankers tend to respond to higher rates of inflation by increasing the real interest rate is:
A. one reason the dynamic aggregate demand curve shifts right.
B. one reason the dynamic aggregate demand curve slopes downward.
C. one reason the dynamic aggregate demand curve shifts left.
D. why the monetary policy reaction curve has a negative slope.
Answer: B
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Two countries engaged in trade in products with scale economies, produced under conditions of monopolistic competition, are likely to be engaged in
A) intra-industry trade. B) price competition. C) inter-industry trade. D) Heckscher-Ohlinean trade. E) immiserizing trade.
The number of units of one good that trade for one unit of alternative goods can be determined most easily when
A) there is one unit of account. B) the goods all weigh about the same. C) the goods are all new. D) the goods are actively traded through barter.
A ______ chance of default will cause the interest rate to be ______.
A. more variable; lower B. less variable; higher C. higher; lower D. higher; higher
Brokerage houses may differ in the
a. fees they charge. b. services they provide. c. stock exchanges on which they hold seats. d. All of the above are correct.