A decrease in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise
B) remain unchanged; fall
C) remain unchanged; rise
D) fall; fall
B
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Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?
a. A decrease in investment spending b. An increase in the rate of inflation c. An increase in unemployment d. A decrease in the rate of inflation e. A decrease in real GDP
Tallulah is a German citizen who works for Volkswagen located in Fresno, California. Tallulah's work contributes to:
A. U.S. GDP, but not U.S. GNP. B. U.S. GNP, but not U.S. GDP. C. German GDP, but not U.S. GDP. D. German GDP and U.S. GNP.
Which of the following statements is true?
a. Private international foreign exchange transactions affect the monetary base. b. Both private foreign exchange transactions and central bank interventions in the foreign exchange market affect the monetary base. c. Neither private foreign exchange transactions nor central bank interventions in the foreign exchange market affect the monetary base. d. Central bank interventions in the foreign exchange market affect the monetary base.
The pursuit of "comparative advantage"
What will be an ideal response?