Other things the same, when the interest rate rises
What will be an ideal response?
people would want to lend more, making the quantity of loanable funds supplied increase.
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If the equilibrium exchange rate of the dollar is 1.10 euros per dollar and currently the exchange rate is 0.90 euros per dollar, then there is a ________ of dollars that leads to ________
A) surplus; the supply curve of dollars shifting leftward B) shortage; a rise in the exchange rate C) surplus; a rise in the exchange rate D) shortage; the supply curve of dollars shifting rightward E) shortage; the demand curve for dollars shifting rightward
The deadweight loss due to a ________ is always smaller than the deadweight loss due to a ________
A) tax on each unit sold; per unit tax on each unit bought B) per unit tax on each unit sold; per unit tax on each unit bought C) tax on each unit sold; lump-sum tax D) lump-sum tax; tax on each unit bought
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country
Indicate whether the statement is true or false
A country is likely to have investment freedom if the government allows free flow of foreign capital into the domestic economy
a. True b. False Indicate whether the statement is true or false