If goods A and B are substitutes, a decrease in the price of good B will:
A) decrease the demand for good A.
B) increase the demand for good B and decrease the demand for good A.
C) increase the demand for good B.
D) increase the demand for good A.
A) decrease the demand for good A.
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If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending, there will be:
A) upward pressure on a country's exchange rate. B) downward pressure on a country's exchange rate. C) no pressure on a country's exchange rate. D) none of the above.
What will happen to a country that fixes the price of foreign exchange below equilibrium?
Explain how businesses decide how much labor to hire in order to produce a certain level of output
What will be an ideal response?
When the growth rate of the money supply is increased, interest rates will fall immediately if the liquidity effect is ________ than the other money supply effects and there is ________ adjustment of expected inflation
A) larger; fast B) larger; slow C) smaller; slow D) smaller; fast