If the real risk-free interest rate falls, the:
a. Demand curve for real loanable funds rises.
b. Demand curve for real loanable funds falls.
c. Supply curve of real loanable funds rises.
d. None of the above.
.D
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Assume that Brazil and Mexico have floating exchange rates. All else held constant, if the price level is stable in Mexico but Brazil experiences rapid inflation then ________.
A. the Brazilian real will appreciate B. the Brazilian real will depreciate C. gold bullion will flow into Brazil D. the Mexican peso will depreciate
If managers ensure zero percent product failure, all of the following are true except which one?
A) Obtaining zero percent product failure is not likely to be possible. B) Obtaining zero percent product failure is likely to make the product very expensive. C) The product would never fail. D) Obtaining 100 percent product perfection is likely to be possible.
Which will cause a larger short-run increase in prices: an anticipated or unanticipated increase in aggregate demand? Will they cause the same increase in prices in the long run?
A decrease in consumption caused by a factor other than a change in the price level
A) shifts the AD curve to the right. B) shifts the AD curve to the left. C) causes an upward movement along the existing AD curve. D) causes a downward movement along the existing AD curve. E) none of the above.