If a country has a balance of payments deficit and wishes to maintain the fixed value of its currency, it will generally
A. sell its own currency for foreign currencies.
B. buy its own currency with foreign reserves.
C. decrease taxes to increase domestic disposable income.
D. increase the money supply to keep interest rates down.
Answer: B
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Assuming that hamburger is an inferior good, an increase in consumer income, other things being equal, will cause a(n):
a. upward movement along the demand curve for hamburger. b. rightward shift in the demand curve for hamburger. c. downward movement along the demand curve for hamburger. d. leftward shift in the demand curve for hamburger.
If the annual inflation rate is higher than 0%, which of the following statements is correct?
a. The specific country is experiencing hyperinflation when viewed over a long period of time. b. Real GDP growth must be higher than nominal GDP growth. c. Nominal GDP growth must be higher than real GDP growth. d. Nominal GDP growth is only higher than real GDP growth if real GDP growth is positive. e. Nominal GDP growth must be positive.
If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right
a. True b. False Indicate whether the statement is true or false
Assume the price of pizza decreases. As a result, your real income increases and you increase the quantity of pizza purchased each month. This is an example of the:
A. substitution effect. B. income effect. C. revenue effect. D. consumer price effect.