Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions rises.
b. Real GDP rises, and current international transactions remain the same.
c. Real GDP rises, and current international transactions become more negative (or less positive).
d. Real GDP rises, and current international transactions become more positive (or less negative).
e. Real GDP falls, and current international transactions become more negative (or less positive).
.A
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In the prisoner's dilemma game, the sentence that each player receives depends on
a. neither strategy chosen b. only the strategy the player chooses c. only the strategy the other player chooses d. the strategy the player chooses and on the strategy the other player chooses e. None of the answers is correct.
To stabilize interest rates, the Federal Reserve will respond to an increase in money demand by
a. buying government bonds, which decreases the supply of money. b. selling government bonds, which increases the supply of money. c. buying government bonds, which increases the supply of money. d. selling government bonds, which decreases the supply of money.
The introduction of ____ had a long delayed effect on raising productivity growth in the late 1990s.
Fill in the blank(s) with the appropriate word(s).
The extra production gained by employing one more worker is called the:
A. marginal product. B. nominal wage. C. surplus product. D. real wage.