Suppose Japanese real interest rates fall. Typically, we should expect a ____________ shift of the U.S. AD curve with a ___________________ shift in United States real interest rates
A) rightward; larger
B) rightward; smaller
C) leftward; larger
D) leftward; smaller
D
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Employees at La Dola Inc often engaged in hasty decision making that resulted in losses for the company. Because employees were not individually accountable for their decisions, this trend continued
However, when the company introduced a policy of profit-sharing with its employees, they began scrutinizing their decisions carefully before implementing. Explain the reason behind the change in the employees' behavior.
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect:
A. an increase in both world price and quantity of cell phones. B. an increase in world price and decrease in world quantity of cell phones. C. a decrease in both world price and quantity of cell phones. D. a decrease in world price, and increase in world quantity of cell phones.
The economy has been slowing, and the Fed wants to quickly give it a meaningful boost. However, the Fed does not want to make a public announcement or engage in a lot of political debate. Of the tools available to the Fed, which is its best option?
a. discount rate management b. interest rate changes c. reserve requirement alterations d. open market operations
Which of the following is correct?
A. If the demand for a product is inelastic, a change in price will cause total revenue to change in the opposite direction. B. If the demand for a product is inelastic, a change in price will cause total revenue to change in the same direction. C. If the demand for a product is inelastic, a change in price may cause total revenue to change in either the opposite or the same direction. D. The price elasticity coefficient applies to demand, but not to supply.