Even though international trade is more complicated, supply and demand are still at the center of the price determination mechanism.
Answer the following statement true (T) or false (F)
True
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If the Federal Reserve ________ the required reserve ratio, the interest rate ________
A) lowers; rises B) lowers; falls C) raises; does not change D) raises; falls E) Not enough information is given because the effect depends also on the size of the monetary base.
An important lesson of the Chilean crisis was that
a. inflows of foreign capital should be strictly regulated b. governments should ensure that the current account balance is kept close to 0 c. governments need to maintain regulation and oversight of the banking sector d. government intervention in financial matters leads to capital flight e. none of the above
An increase in the number of buyers in the market for LED TVs would cause the market demand curve for LED TVs to:
A) shift right. B) shift left. C) stay the same because market demand doesn't depend on the number of buyers. D) shift left or right depending on whether the new buyers purchase more or less than existing customers at each price.
C = $40 million + 0.6(1 - 0.2)Y I = $35 million G = $31 million NX = -$6 million Based on the above data, the equilibrium level of GDP is
A) $113.6 million. B) $192.3 million. C) $208.3 million. D) $833.3 million.