When a country experiences capital flight, the interest rate
a. falls because the demand for loanable funds shifts left.
b. falls because the supply for loanable funds shifts right.
c. rises because the demand for loanable funds shifts right.
d. rises because the supply for loanable funds shifts left.
c
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A currency's spot exchange rate against every other individual currency is known as a ________ exchange rate, and the exchange rate which shows how a currency is changing relative to a group of other countries' currencies is known as a ________
exchange rate. A) nominal; real B) unilateral; bilateral C) nominal; parity D) bilateral; multilateral
In the long run, larger budget deficits lead to ________
A) higher saving levels B) a fall in investment C) lower interest rates D) all of the above E) none of the above
Farmer Fred could grow wheat and barley. He could grow 75 bushels of wheat or 125 bushels of barley using the same resources on an acre of his land. The price of wheat is $2.00 per bushel and the price of barley $ 0.80 . Show the benefits to Fred from specialization. What should he specialize in?
Which of the following exemplifies “featherbedding”?
a. Although only 20 work stations were operational, the union contract increased the number of shift personnel to 25. b. As a message of protest, union members walked out of the plant in response to management’s recent directive. c. During the day shift, union leadership regularly held impromptu informational meetings with union members. d. Union committee members and management negotiators planned for a long night at the bargaining table.