When the price level decreases, which of the following also decreases?
a. consumption
b. government spending
c. the interest rate
d. RGDP demanded
c. the interest rate
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Explain whether the statement, "Hillary Clinton was elected President of the United States in 2008," is a normative or positive statement
What will be an ideal response?
In the above figure, suppose the demand for dollars temporarily increases so that the demand curve shifts to D1. To maintain the target exchange rate, the Fed
A) can sell dollars. B) can buy dollars. C) must violate interest rate parity but not purchasing power parity. D) cannot maintain the target exchange rate.
If buyers cannot assess the quality of used cars but there are warranties for cars,
A) too few lemons are sold. B) too many good used cars are sold. C) good used cars are sold at a higher price than lemons. D) there is an adverse selection problem.
If a friend tells you that he is certain a stock price will rise based on information he heard on television or saw on the Internet, should you be skeptical? Explain