If the Fed increases the interest rate in the U.S.:
A) the demand curve for dollars will shift to the left.
B) the demand curve for dollars will shift to the right.
C) the supply curve of dollars will shift to the right.
D) the real exchange rate of the U.S. will depreciate.
B
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During recessions natural real GDP
A) falls. B) increases. C) remains constant. D) A, B, or C do occur during any given recession.
When a business firm makes an investment in physical capital, that investment is subject to _____.
a. state and local government incentives b. economic output and productivity c. political orientated incentives d. the discipline of the market
The pattern in which insurance is purchased more frequently by those who are the most costly for companies to insure is referred to as:
A. risk aversion. B. statistical discrimination. C. moral hazard. D. adverse selection.
A lack of infrastructure can limit a poor nation's economic growth.
Answer the following statement true (T) or false (F)