Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point B to Point A, there has been
A. a decrease in demand and a decrease in quantity supplied.
B. a decrease in both supply and demand.
C. a decrease in supply and a decrease in quantity demanded.
D. an increase in supply and a decrease in quantity demanded.
Answer: A
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Full integration would lower the effective tax rate on capital and, therefore, lead to increased saving.
A. True B. False C. Uncertain
Access to a pool, granted by a key given to the people who own houses in the specific neighborhood, is what type of property?
A. Public property B. Common property C. Private property D. Shared property
The United States is a net importer of capital. This means
a. that U.S. citizens own more foreign assets than foreigners own U.S. assets. b. that citizens of other countries are buying more U.S. assets than Americans are buying abroad. c. only that U.S. citizens own foreign assets. d. only that foreign citizens own U.S. assets. e. that citizens of other countries are buying fewer U.S. assets than Americans are buying abroad.
According to the quantity theory of money, if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be
A) 8%. B) 6%. C) 4%. D) 2%.