In the Classical model, a decrease in the money supply __________ the real GDP and __________ the price level
A) leaves unchanged; leaves unchanged
B) leaves unchanged; lowers
C) lowers; lowers
D) lowers; leaves unchanged
B
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During expansions
a) sales and profits rise. b) sales rise, but profits fall. c) sales fall, but profits rise. d) sales and profits fall.
In international trade jargon, an economy is said to be a large country if
A. it is a price-taker in the world market. B. a decline in its imports does not affect its terms of trade. C. a majority of its production is consumed domestically. D. a decline in its exports raises the world price of those goods.
An insurance company provides liability insurance to a restaurant protecting the owner against claims from customers. One area of coverage is protection against food poisoning claims. The insurance company may periodically send an employee into the restaurant to observe food preparation and food storage processes. The insurance company is trying to avoid:
A. transaction costs. B. moral hazard. C. adverse selection. D. free riding.
What are the three main sets of factors that cause the supply and demand curves in the foreign exchange market to shift?
What will be an ideal response?