Which of the following is least likely to cause a shift of the consumption function?
a. A change in the level of saving
b. A change in consumer expectations about future prices
c. A change in household wealth
d. A change in investment spending
e. A change in the interest rate
d
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If the long-run equilibrium of an economy is disrupted by an unanticipated increase in aggregate demand (such as might result from unexpectedly strong demand for exports due to the rapid growth of incomes abroad),
a. the price of resources will decrease. b. the natural rate of unemployment will decrease. c. actual unemployment will temporarily fall below the natural rate. d. prices will decrease.
For which of the following does the HeckscherOhlin model offer an explanation?
I. gains from trade II. the pattern of trade. III. the effects of international trade on the returns to mobile resources. a. I b. I and II c. I and III d. I, II, and III
Suppose financial market participants expect short-term rates in the future to be less than current short-term interest rates. Given this information, we would expect
A) an upward sloping yield curve. B) a downward sloping yield curve. C) an upward shifting yield curve. D) a downward shifting yield curve. E) a horizontal yield curve.
Which of the following is likely hardest to resell?
A) An Apple iPod B) A discount airline ticket you bought with your frequent flyer miles C) A used car D) The free spa treatment you won at a raffle