When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward
A) rises; does not change
B) rises; decreases
C) falls; increases
D) rises; increases
E) falls; decreases
D
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Countries with stable inflation rates tend to have ________ SAS curves
A) flat B) steep C) flat or steep D) None of the above. All countries have SAS curves with almost the same slope.
The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. If a $1 tariff is imposed on imported rice, the loss in social welfare is
A) b + c + d + e. B) a. C) i. D) a + c + d + e.
All of the following are income in kind EXCEPT
A) government provided housing. B) government provided education. C) tips received by a waitress. D) goods produced in the home.
Two variables are independent if as one variable __________, the other variable __________
A) rises; rises. B) falls; falls. C) rises; falls. D) changes; does not change.