An open market sale by the Fed causes the value of the dollar to
A) fall, increasing net exports. B) rise, reducing net exports.
C) fall, reducing net exports. D) rise, increasing net exports.
B
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The cross elasticity of demand is a measure of how
A) responsive consumers are to changes in the price of a product. B) responsive suppliers are to changes in the price of a product. C) demand for a product changes when the price of a substitute or complement changes. D) total revenue changes when the price of a product changes. E) demand for a product changes when income changes.
Which of the following economic systems answers the basic economic questions by copying the previous generation?
a. Traditional economy. b. Command economy. c. Market economy. d. Capitalism.
Which of the following would lead to a rightward movement along the aggregate expenditure line rather than a shift of the line itself?
a. A reduction of the marginal propensity to consume b. A decrease in income of $100 billion c. An increase in income of $50 billion d. An increase in the interest rate e. A $50 billion decrease in autonomous consumption spending
Using a decision tree:
A. can help identify the dominant strategies in a prisoner's dilemma-type game. B. allows a player to see his optimal strategy in a simultaneous game. C. can help define a binding commitment strategy. D. allows a player to see his optimal strategy in a sequential game.