Because a decrease in the nominal interest rate reduces the opportunity costs of holding money, the money demand curve:
A. slopes upward.
B. shifts to the right.
C. shifts to the left.
D. slopes downward.
Answer: D
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Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP, in the short run
A. foreign countries' GDP will rise. B. GDP will fall. C. GDP will rise. D. there will be no change in GDP in this country.
Paul Romer, an economist at Stanford University, is most closely associated with what economic theory?
A) the process of creative destruction B) the Communist Manifesto C) new growth theory D) labor productivity theory
Which of the following are risks for multinational corporations but not risks for domestic corporations?
A) changes in government rules and regulations B) capital controls C) changes in tax laws D) government red tape and corruption
With the economy booming, the government starts to worry about the increasing rate of inflation, and decides to cut its spending on highway maintenance and defer it to sometime in the future. This is an example of:
A. an automatic stabilizer. B. discretionary fiscal policy. C. expansionary fiscal policy. D. None of these is true.