]If consumers become more optimistic, which of the following is the most likely in the short run?
a. A decrease in output, a decrease in money demand, and a decrease in the interest rate.
b. An increase in output, an increase in money demand, and an increase in the interest rate.
c. An increase in output, an increase in money demand, and a decrease in the interest rate.
d. A decrease in output, an increase in money demand, and a decrease in the interest rate.
e. An increase in output, a decrease in money demand, and a decrease in the interest rate.
B
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a. True b. False Indicate whether the statement is true or false
Comparative advantage occurs when a person or a country can produce a good or service at a lower ____ than others.
A. fixed cost B. variable cost C. opportunity cost D. total cost
In the equation of exchange, the level of aggregate expenditures is indicated by:
A. MV. B. MV/Q. C. PM. D. MV/P.
An increase in the foreign real interest rate would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________.
A. rise; shift up B. rise; shift down C. fall; shift up D. fall; shift down