When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ________ and there is a capital ________ the United States.
A. imports increase; inflow to
B. imports decrease; inflow to
C. exports increase; outflow from
D. imports increase; outflow from
Answer: A
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If ethanol production is expected to increase the price of corn, U.S. farmers will likely
A) shift the supply of corn to the left. B) shift the supply of corn to the right. C) reduce the production of corn by sliding down the corn supply curve, all else equal. D) increase the production of corn by sliding up the corn supply curve, all else equal.
The value of the money multiplier will depend on the rate of interest that banks charge
a. True b. False Indicate whether the statement is true or false
If pencils and paper are complements for most consumers, then if the price of paper increases, you would expect:
A. the equilibrium price of pencils to rise and the equilibrium quantity of pencils to fall. B. the equilibrium price and quantity of pencils to fall. C. the equilibrium price and quantity of pencils to rise. D. the equilibrium price of pencils to fall and the equilibrium quantity of pencils to rise.
Economics is the study of:
A. how to invest in the stock market. B. how society uses limited resources. C. the role of money in markets. D. how government officials decide which goods and services are produced.