As the nominal interest rate increases ________
A) it becomes more costly to hold money instead of bonds
B) the quantity of money demanded falls
C) the opportunity cost of holding money rises
D) all of the above
E) none of the above
D
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When the Bureau of labor Statistics makes seasonal adjustments in the labor force data, what is it likely to do with the number of people in the labor force during the month of June?
A) Lower the number each year. B) Raise the number each year. C) Lower the number about as often as it raises the number in the long run. D) Multiply the number by the labor force participation rate.
Capital inflows that take the form of direct investment may be particularly beneficial if they bring new technologies, new management techniques, and new ideas to the host country
Indicate whether the statement is true or false
According to purchasing-power parity, if the Federal Reserve increased the money supply
a. U.S. prices would rise and the nominal exchange rate would rise. b. U.S. prices would rise and the nominal exchange rate would fall. c. U.S. prices would fall and the nominal exchange rate would rise. d. U.S. prices and the nominal exchange rate would fall.
In the above diagram, total product will be at a maximum at:
A. Q2 units of labor B. Q3 units of labor C. Q1 units of labor D. some point that cannot be determined with the above information.