When interest rates rise in the United States (with the price level fixed), the value of the dollar ________, domestic goods become ________ expensive, and net exports ________
A) falls; less; fall
B) falls; more; rise
C) rises; more; fall
D) rises; less; fall
C
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Refer to Figure 6.1. At point A, the marginal product of labor is
A) rising. B) at its minimum. C) at its maximum. D) diminishing.
Which would be the most accurate statement?
A. Liberals all agree that if we could provide a job for every American who needs one, we could end nearly all poverty within a generation. B. Barbara Ehrenreich and Frances Fox Piven point out that an increasing number of jobs do not pay enough to subsist on. C. Lisabeth and Daniel Schorr believe that poor teenage girls allow themselves to get pregnant so that they could go on welfare. D. Charles Murray faults our economic system for not providing enough well-paying jobs, which, in turn, has led to widespread poverty.
Interest is paid to
A. owners of capital. B. borrowers of funds. C. all holders of stock. D. individuals who own gold.
Other than the incentive for the federal government to accrue debt, what other problems are associated with the Fed keeping interest rates low.
What will be an ideal response?