If real interest rates rise in the United Kingdom relative to the United States, then this event is most likely to cause the British pound to:
A. Depreciate and the U.S. dollar to depreciate
B. Depreciate and the U.S. dollar to appreciate
C. Appreciate and the U.S. dollar to appreciate
D. Appreciate and the U.S. dollar to depreciate
D. Appreciate and the U.S. dollar to depreciate
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When changes in taxes and government purchases occur in the economy without explicit action by Congress, such changes are referred to as
A. discretionary fiscal policy. B. automatic stabilizers. C. cyclical stabilization. D. implicit stabilization.
ATMs were developed because of breakthroughs in technology and as a
A) means of avoiding restrictive branching regulations. B) means of avoiding paying interest to corporate customers. C) way of concealing transactions from the SEC. D) increasing the competition from foreign banks.
In the United States, some groups have higher incomes than others. Which of these would be considered discrimination?
A. English professors, who are more likely to be female than engineering professors, are paid less than engineering professors. B. A male employee is paid more than an equally qualified female employee because the male employee is a manager and the female employee is not. C. White candidates for a job opening are consistently preferred over equally qualified black candidates for the same position. D. College-educated employees are consistently paid more than employees without a college education.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher