If the exchange rate rises from .65 British pounds per dollar to .70 pounds per dollar, then compared to British goods, U.S. goods become
a. relatively more expensive for both British and U.S. residents.
b. relatively more expensive for British residents and relatively less expensive for U.S. residents.
c. relatively less expensive for British residents and relatively more expensive for U.S. residents.
d. relatively less expensive for both British and U.S. residents.
a
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In an open economy, national saving equals
a. domestic investment plus net capital outflow. b. domestic investment minus net capital outflow. c. domestic investment. d. net capital outflow.
Suppose the central bank decreases the growth rate of the money supply. In the short run, this policy change will affect
a. both the unemployment rate and the inflation rate. b. the unemployment rate but not the inflation rate. c. the inflation rate but not the unemployment rate. d. neither the inflation rate nor the unemployment rate.
In an open economy, the quantity supplied of bikes in the domestic market is ________.
A. 50,000 B. 20,000 C. 100,000 D. 80,000
If the working-age population in an economy shrinks, real GDP can still grow if:
A. Work hours per week decreases, to spread work among more workers B. Labor productivity increases rapidly enough C. Consumption by households increase rapidly D. Spending by firms and the government increases