Higher U.S. interest rates usually cause:
A. no change in foreign investment in the United States.
B. a drop in the U.S. dollar exchange rate.
C. foreign capital to enter the United States.
D. foreign capital to leave the United States.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. The major reason education leads to higher wages is due to signaling. 2. Attending college can be seen as an individual’s attempt to raise their level of human capital. 3. Since mowing ones lawn is not done at their workplace, it is viewed as a use of their leisure time and thus (somewhat paradoxically) falls into the category of leisure. 4. One deficiency of labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker’s budget line, the model can not explain why some people choose not to work. 5. A firm’s marginal revenue product of labor equals the marginal product of labor times the cost per unit of the labor.
If monetary policy must be used to set the market equilibrium value of the exchange rate equal to the official value, it:
A. is no longer available to stabilize the domestic economy. B. will be unable to stabilize the market equilibrium value of the exchange rate. C. will increase the rate of growth in the economy. D. will simultaneously stabilize the domestic economy.
Marginal profit is negative when:
A) marginal revenue is negative. B) total cost exceeds total revenue. C) output exceeds the profit-maximizing level. D) profit is negative.
An upward shift of the consumption function might be caused by _____
Fill in the blank(s) with the appropriate word(s).