The actions of buyers and sellers naturally move markets toward equilibrium
a. True
b. False
Indicate whether the statement is true or false
True
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Holding all else constant, an increase in Mexican real GDP will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ________ transfer payments and thereby ________ the income of some households
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is
A) -3%. B) 3%. C) 6.67%. D) 15%.
Variations in a time-series forecast can be caused by:
a. cyclical variations b. secular trends c. seasonal effects d. a and b only e. a, b, and c