According to the theory of liquidity preference, an increase in the rate of growth of the money supply will cause which of the following?
a. Interest rates will fall.
b. Interest rates will rise.
c. Nominal wages will fall.
d. Nominal GDP will stay the same.
e. Real GDP will fall.
a. Interest rates will fall.
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Cyclical unemployment is primarily caused by:
a. a large proportion of youthful workers in the labor force. b. fluctuations in aggregate demand. c. a lack of training on the part of job seekers. d. the failure of job seekers to search adequately for the available jobs.
All economies in the world have consistently run trade deficits in recent years.
Select whether the statement is true or false. A. True B. False
If Rhoda in Hungary buys candy from Matt in Maine for $20, and Matt buys food in his favorite goulash restaurant in Hungary for $20, then the U.S. net exports:
A. is zero and net capital outflow is $20. B. and net capital outflow both equal $20. C. equals $20 and net capital outflow is zero. D. and net capital outflow are both zero.
In economics, resources are also known as
A) minerals. B) factories. C) factors of production. D) human capital.