Many economists argue that higher real interest rates in the United States (relative to foreign real interest rates) will lead to a(n) ________________ of the dollar and subsequent shifts in the U.S. AD curve and SRAS curve such that Real GDP will ___________________
A) depreciation; increase
B) depreciation; decrease
C) appreciation; increase
D) appreciation; decrease
D
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Expansionary policies are policies designed to
A) reduce the level of real GDP. B) increase the level of real GDP. C) reduce the federal deficit. D) decrease government spending.
The Saturn Corporation (once a division of GM) was permanently closed in 2009 . What went wrong with Saturn?
a. Saturn's cars sold at prices higher than rivals Honda or Toyota, so they could not sell many cars. b. Saturn sold cars below the prices of Honda or Toyota, earning a low 3% rate of return. c. Saturn found that young buyers of Saturn automobiles were very loyal to Saturn and GM. d. Saturn implemented a change management view that helped make first time Saturn purchasers trade up to Buick or Cadillac. e. all of the above
Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the ceiling fan business, she worked as a fan-dancer at $25,000 a year. Should Sally remain in business?
What will be an ideal response?
Which of the following offers the most likely explanation of why average total cost is falling in a cereal factory?
a. Production bottlenecks and equipment breakdowns have stalled production. b. The production facility was designed for a lower level of output. c. The wholesale prices of grains and fruit have risen due to market demands. d. The cost of producing an additional box of cereal is less than the factory’s average total cost.