In the economic way of thinking, speculation can only occur
A) in a capitalist economy.
B) in a society where time-travel is possible.
C) under uncertainty.
D) under perfect information.
E) in an underground or illegal market system.
C
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In the circular-flow diagram, firms own the factors of production and use them to produce goods and services
a. True b. False Indicate whether the statement is true or false
In order to maintain a fixed exchange rate when demand for a domestic currency falls, the government must:
a) use its foreign currency reserves to buy domestic currency. b) use domestic currency to buy more foreign currency. c) print more money to boost the money supply. d) reduce interest rates to attract more demand for domestic currency.
If the government decides to change the level of government spending, what happens to the value of the multiplier?
A. It becomes larger. B. It becomes smaller. C. It does not change. D. It is impossible to predict.
The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. When real GDP is $15 billion, firms' inventories experience an unplanned
A) increase of $5 billion. B) decrease of $10 billion. C) increase of $4 billion. D) decrease of $1 billion. E) increase of $10 billion.