A small open economy reduces its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. fall; fall
B. remain unchanged; fall
C. remain unchanged; rise
D. fall; rise
Answer: B
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Research conducted by Roland Fryer shows that the "blackness" of a mother's name plays a significant role in terms of the woman's overall life outcomes
Indicate whether the statement is true or false
Studies show that the income elasticity of demand for wine is approximately five. What does this mean?
A) A 1 percent increase in income leads to a 5 percent increase in wine consumption. B) A 1 percent decrease in the price of wine leads to a 5 percent increase in wine consumption. C) A 5 percent increase in income leads to a 1 percent increase in wine consumption. D) Wine is a relatively elastic good.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker makes three transactions, what is his bid-ask spread per unit
a. $4 b. $5 c. $6 d. $7
What do antitrust laws enable the government to do?
a. Break up large firms into smaller ones b. Acquire a controlling percentage of large firms c. Require firms to sell off profitable operations d. Block all mergers and acquisitions by foreign firms