If demand for a product increases, ceteris paribus, the equilibrium
A) quantity decreases. B) price increases.
C) price remains unchanged. D) price decreases.
B
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If a sailboat manufacturer has an agreement with the firm that produces the sails for the sailboats, this is an example of a ________ agreement.
A) horizontal B) rightward C) vertical D) leftward
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and current international transactions become more positive (or less negative). b. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). c. The real risk-free interest rate and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). e. The real risk-free interest rate rises, and current international transactions remain the same.
A market exists for the sale and purchase of
a. Computer services. b. Nuclear warheads. c. Illegal drugs. D. All of the above.
A bank manager tells you that she doesn't create money. She just lends the money that people deposit. Explain why she's wrong
What will be an ideal response?