In the market for yen, an increase in U.S. real interest rates tends to
A. decrease demand.
B. increase equilibrium price.
C. increase excess demand.
D. cause no change in equilibrium price.
Answer: A
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Given an MPC of 0.8, if there are no income taxes or imports and prices are constant, then when investment increases by 50 million and prices are fixed, equilibrium GDP would
a. increase $400 million. b. increase by $50 million. c. increase by $250 million. d. increases by $100 million.
Costs that are incurred when people engage in a trade
A) are a waste of resources because they do not create benefits of equal or greater value. B) can be eliminated by substituting government regulation for voluntary exchange. C) reduce the amount of exchange that occurs. D) rise as the number of middlemen increases.
If a person owns 2,000 shares in a corporation that has issued 200,000 shares of stock, that person owns ____ of the company and is entitled to ____ of the dividends.
A. 1 percent; 1 percent B. 2 percent; 2 percent C. 10 percent; 10 percent D. 20 percent; 20 percent
The objective of supply-side economics is to _____________. The problem, said the supply-siders, was that ___________ were hurting the incentive to work and invest.
Fill in the blank(s) with the appropriate word(s).