A decline in the exchange rate could have been caused by which of these factors?
A) A decline in domestic output (income)
B) An increase in the domestic real interest rate
C) A decline in the world demand for domestic goods
D) An increase in foreign output (income)
C
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In recent years, the prices of new domestically produced cars have been falling. Suppose consumers respond by reducing their demand for used cars and mass transport services such as bus travel
This information suggests that the cross-price elasticity between new cars and used cars, and the cross-price elasticity between new cars and bus travel, are negative. Indicate whether the statement is true or false
Which of the following statements is TRUE for the U.S.?
A) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $250,000. B) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $100,000. C) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against losses up to $10,000. D) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against natural disaster up to $100,000. E) The Federal Deposit Insurance Corporation (FDIC) insures bank deposits against floods up to $100,000.
Money ________ transaction costs, allowing people to specialize in what they do best
A) reduces B) increases C) enhances D) eliminates
If the MPC were to increase from 0.75 to 0.8, then the spending multiplier would:
A. increase from 4 to 5. B. decrease from 5 to 4. C. increase from 0.2 to 0.25. D. decrease from 1.25 to 1.2.