Speculators who act on the basis of bad forecasts harm
What will be an ideal response?
themselves and others in society.
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Which of the following is an example of a supply shock?
A) a surprise increase of the money supply B) an increase in the price level C) a sharp increase in the price of oil D) an increase in government spending
According to an old saying, when too much money is chasing too few goods, we have a(n)
A. recessionary gap. B. inflationary gap. C. full employment. D. paradox of thrift.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model? a. The real risk-free interest rate rises and real GDP falls
b. The real risk-free interest rate falls and real GDP rises. c. The real risk-free interest rate rises and real GDP remains the same. d. The real risk-free interest rate and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following statements about the public debt is? true?
A) It is equal to the budget deficit.
B) It decreases when the government runs a budget deficit.
C) It is a stock variable.
D) all of the above