Sweden's currency would tend to depreciate if:
a. Sweden's inflation rate rises relative to inflation in the rest of the world.
b. the demand for imports by Swedes increases
c. real interest rates in Sweden decrease relative to the rest of the world.
d. all of the above
d
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Making a decision "on the margin" involves comparing:
A. additional benefits against additional costs. B. total benefits against total costs, which include benefits and costs from past decisions. C. sunk costs against opportunity costs. D. the most benefit you could expect to get without considering costs.
In an economy where nominal incomes adjust equally to changes in the price level, we would expect the long-run aggregate supply curve to be: a. vertical
b. horizontal. c. unit elastic. d. negatively sloped. e. positively sloped.
Which of the following people purchased the correct asset to meet his or her objective?
a. Michelle wanted to be a part owner of Mamma Rosa's Pizza, so she purchased a bond issued by Mamma Rosa's Pizza. b. Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric. c. Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda. d. All of the above are correct.
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose that money demand is currently at Point B. A movement to Point D could be caused by
A. an increase in the price level, ceteris paribus. B. an increase in nominal income, ceteris paribus. C. a decrease in the price level, ceteris paribus. D. a decrease in the interest rate, ceteris paribus.