Capital outflow from a country during a financial crisis will
A. result in an appreciation of the domestic currency.
B. lower domestic interest rates.
C. put pressure on local financial institutions.
D. lower foreign stock prices.
Answer: C
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The rate at which a firm is able to substitute one input for another while keeping the level of output constant is called the
A) marginal rate of technical substitution. B) isoquant substitution rate. C) opportunity cost of inputs. D) input trade-off rate.
As DVDs become popular substitutes for video cassettes, demand for video cassettes is likely to
a. become less price elastic b. become more price elastic c. increase d. stay the same e. become unit elastic
Economists argue that the move from barter to money increased trade and production. How is this possible?
If you earned $10-an-hour in 2005 when the CPI was 100, and you earn $11-an-hour today when the CPI is 120, then your real wage rate has _____ since 2005.
Fill in the blank(s) with the appropriate word(s).