If interest rates rise, what will happen to the nation's exchange rate?
What will be an ideal response?
It will appreciate.
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Keynesian macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________
A) does; prices are sticky B) does; prices are not sticky C) does not; prices are not sticky D) does not; prices are sticky
Which of the following payments best exemplifies economic rent?
a. Paige and her roommates sent the landlord a $1,500 payment on the first of every month. b. Miguel let Call Co. place a cell tower on two acres of his bean field in exchange for $45,000 per year. c. Monica made $60,000 a year as a vacation rental agent for a lakefront property company. d. A freelance worker, Wei, bought a $550,000 condo in the city to be closer to his clients.
Assume a two-country, two-commodity, two-input model where the following relationships hold:(K/L)U.S. > (K/L)ROW(K/L)automobiles > (K/L)shoes(K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes.Assume further that technology and tastes are the same in the United States and the Rest of the World. If trade opens up between the United States and the Rest of the World, according to the Heckscher-Ohlin model, the United States will export ________ and import
A. shoes; automobiles. B. automobiles; shoes. C. neither good; both goods. D. both goods; neither good.
Capital outflow from a country during a financial crisis will
A. result in an appreciation of the domestic currency. B. lower domestic interest rates. C. put pressure on local financial institutions. D. lower foreign stock prices.