Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency falls.
b. There is not enough information to determine what happens to these two macroeconomic variables.
c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same.
d. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls.
e. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises.
.A
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Other things constant, ________ people will seek medical care when the price of a doctor's visit ________
A) fewer; falls B) more; falls C) more; rises D) no; rises.
The notion that the central bank should set its federal funds target by a formula that puts weight on both output and inflation gaps is known as ________
A) the Taylor rule B) the constant growth rate rule for money C) the equation of exchange D) the Lucas rule
In the U.S., the ________ and the ________ prohibit firms from explicitly agreeing to take actions that reduce competition
A) Department of Justice Act; Federal Trade Commission Act B) Sherman Antitrust Act; Federal Trade Commission Act C) Per Se Act; Sherman Antitrust Act D) Pareto Act; Anti-Cartel Act
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is TRUE?
A) Under both the capture theory and the share-the-gains, share-the-pain theory profits will decrease. B) An increase in price will occur quicker in the share-the gains, share-the-pain theory than the capture theory. C) An increase in price will occur quicker in the capture theory than the share-the-gains, share-the-pain theory. D) In the capture theory there will be an increase in price but not in the share-the-gains, share-the-pain theory.