An increase in the real interest rate would cause an increase in the real demand for money
A. no matter what the change in expected inflation.
B. if expected inflation fell by less than the rise in the real interest rate.
C. if expected inflation fell by more than the rise in the real interest rate.
D. if expected inflation fell by the same amount as the rise in the real interest rate.
Answer: C
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During the last year, foreign investment in a country was $500 billion and the country's investment abroad was $600 billion. Which of the following statements is true?
A) The country has a current account deficit of $1,100 billion. B) The country has net borrowing of $100 billion. C) The country has a current account deficit of $100 billion. D) The country has a capital and financial account deficit of $1,100 billion. E) The country has net lending of $100 billion.
If the current account shows a deficit, the capital account must show a surplus of the same amount
a. True b. False
Which statement is true about the graph above?
A. Equilibrium GDP is too big.
B. Equilibrium GDP is too small.
C. Equilibrium GDP is just the right size.
D. There is not enough information to determine whether or not equilibrium GDP is the right size.
Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is $5 per bushel. He also knows that a consumer is willing to pay a maximum of $9 for the bushel. The price of the bushel is $6 and Farmer Jones sells his bushel for $6
On this bushel, Farmer Jones earns a producer surplus equal to A) $1. B) $3. C) $5. D) $6.