If the exchange rate rises, which of the following falls in the open-economy macroeconomic model?
a. desired net exports and desired net capital outflow
b. desired net exports but not desired net capital outflow
c. desired net capital outflow but not desired net exports
d. neither desired net exports nor desired net capital outflow
b
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Which of the following is incorrect? During the Great Recession U.S:
a. Wealth fell. b. Unemployment duration rose. c. Monetary base fell. d. Inflation fell. e. All of the above are correct.
For an employer biased against African Americans, the discrimination coefficient d:
A. will decrease if the employer becomes more prejudiced against African Americans. B. must equal the actual ratio of African-American to white wage rates. C. measures the amount an employer is willing to pay to hire a white over hiring an African- American worker. D. varies inversely with the actual African-American-white wage ratio.
A perfectly elastic demand curve
A. has a slope of -1. B. shows that a slight change in income will lead to a large reduction in price. C. shows that a slight increase in price will reduce quantity demanded to zero. D. is a vertical line drawn across from the quantity axis.
Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same. If there is no ordinance against loud music, the Coase theorem predicts that
A) Dudley will pay Angus to not play the bagpipes. B) Angus will pay Dudley so Angus can play the bagpipes. C) Dudley will do nothing and Angus will mop floors. D) no bargain can be reached between Angus and Dudley.