Referring to Figure 18.3, the effect of a decrease in U.S. interest rates is represented by a movement from point:
A. d to a.
B. c to b.
C. c to d.
D. b to c.
Answer: D
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China's exchange rate system from 1994 through 2005 is an example of
A) a flexible exchange rate system. B) a fixed exchange rate system. C) a managed float exchange rate system. D) the Bretton Woods System. E) a floating exchange rate system.
Other things constant, the more profitable a corporation is,
a. the lower the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues b. the higher the value of its shares on the stock market and the higher the interest rate it would have to pay on new bond issues c. the higher the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues d. the lower the value of its shares on the stock market and the higher the interest rate that would have to be paid on new bond issues e. the lower the interest rate that would have to be paid on new bond issues; the value of its shares on the stock market does not vary
Classical economists reject the laissez-faire theory that the economy would self correct to full employment without government interference
a. True b. False Indicate whether the statement is true or false
When demand for goods and services is high, firms are more likely to hire more workers
a. True b. False Indicate whether the statement is true or false