If a 10 percent increase in the price of one good A results in an increase of 5 percent in the quantity demanded of another good B, then it can be concluded that the two goods A and B are:
A. Complementary goods
B. Substitute goods
C. Independent goods
D. Normal goods
B. Substitute goods
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Which of the following is NOT true of the yield curve for U.S. Treasury securities?
A) Typically, it slopes upward. B) It depicts the relationship among yields on securities of different maturities. C) Typically, it shifts up or down rather than twists. D) Typically, it slopes downward.
The market interest rate
a. represents the opportunity cost of investing with borrowed funds b. has no impact on the firm's investment decision if the firm uses borrowed funds c. represents the opportunity cost of investing with savings d. has no impact on the firm's investment decision if the firm uses savings e. represents the opportunity cost of investing with either borrowed funds or savings
Which of the following would increase the U.S. demand for foreign currency?
a. an increase in the U.S. demand for foreign goods b. an increase in incomes abroad c. a decrease in U.S. incomes d. a decrease in the U.S. demand for foreign goods e. an increase in U.S. real interest rates
What is typically used for cross country comparisons of GDP?
a. purchasing power parity (PPP) b. exchange rate c. GDP per capita d. GDP