If the U.S. real exchange rate appreciates, U.S. exports to Europe
a. and European exports to the U.S. both rise.
b. and European exports to the U.S. both fall.
c. rise, and European exports to the U.S. fall.
d. fall, and European exports to the U.S. rise.
d
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What interest rate does a bank pay when it borrows reserves from the Fed?
a. The discount rate. b. The prime rate. c. The federal funds rate. d. The required reserve rate.
The decision rule for constrained optimization is to select the level for each activity at which
A. total benefit per dollar of total cost is equal across all activities. B. marginal benefit equals marginal cost for each activity. C. total benefit equals total cost for each activity. D. marginal benefit per dollar of marginal cost is equal across all activities.
When the ratios of the marginal utility to the price of goods are equal, you're maximizing utility.
Answer the following statement true (T) or false (F)
Suppose lower expectations lead to a decrease of $240 in desired investment in the economy and the marginal propensity to consume is 0.75.Table 10.2Spending CyclesChange in this Cycle's Spending and IncomeCumulative Decrease in Spending and IncomeFirst-cycle spending-$240-$240Second-cycle spending________________Third-cycle spending________________In Table 10.2, what is the cumulative decrease in expenditure by the end of the third cycle?
A. -$420.00. B. -$555.00. C. -$960.00. D. -$240.00.