Other things remaining the same, if the U.S. interest rate differential increases, the demand curve for U.S. dollars shifts ________ and the supply curve of U.S. dollars shifts ________
A) rightward; rightward
B) rightward; leftward
C) leftward; rightward
D) leftward; leftward
B
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The causes of prosperity that link high levels of prosperity to high levels of inputs of production, without explaining why the levels of those inputs are high, are referred to as:
A) fundamental causes of prosperity. B) implicit causes of prosperity. C) proximate causes of prosperity. D) explicit causes of prosperity.
According to Baumol and Blinder, the real-world multiplier will be smaller than 1/(1 ? MPC) because the 1/(1 ? MPC) measure is based on
a. a model that ignores inflation associated with the expansion of income. b. a model that ignores taxes that tend to change as income changes. c. a model that ignores the effects of international trade. d. all of the above.
The retail trade for clothing would be an example of which market model?
A. Monopolistic competition B. Pure monopoly C. Oligopoly D. Pure competition
For a small country with a closed economy, if the marginal propensity to save is equal to 0.2, then the spending multiplier indicates that a $10 exogenous increase in government spending will lead to a $20 increase in gross domestic product (GDP).
Answer the following statement true (T) or false (F)