Liquidity preference refers directly to Keynes' theory concerning
a. the effects of changes in money demand and supply on interest rates.
b. the effects of changes in money demand and supply on exchange rates.
c. the effects of wealth on expenditures.
d. the difference between temporary and permanent changes in income.
a
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“OPEC is exploiting the United States by selling us oil at inflated prices.” Agree or disagree.
What will be an ideal response?
The above figure shows the U.S. market for replacement cell phone batteries. Area C is the
A) deadweight loss from tariff. B) decrease in consumer surplus due to the tariff. C) increase in producer surplus due to the tariff. D) tariff revenue. E) loss in total surplus because of the tariff.
In the Romer model. as more labor is devoted to research and development ________
A) there is an immediate decrease in output per capita B) there is an immediate increase in output per capita C) output per capita is unaffected, but the savings rate begins to rise D) output per capita is unaffected, but the savings rate begins to fall
When the Fed makes an open market purchase, long-term real interest rates will ________, which will ________ GDP
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease