An increase in foreign output 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
Answer: A
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There is $5,000,000 of currency in Econland, all held by banks as reserves. The public does not hold any currency. If the banks' desired reserve/deposit ratio is 0.25, then the money supply equals:
A. $20,000,000 B. $10,000,000 C. $6,250,000 D. $5,000,000
Changes in the health of the average person are an important indicator of changes in the standard of living
Indicate whether the statement is true or false
The tertiary sector of the economy employs housecleaners, restaurant help and hotel employees; it does not employ private consultants, accountants, nanotechnologists, managers and other professionals
Indicate whether the statement is true or false
The Big River Power Company is a regulated monopolist with pricing structured such that the stockholders receive a "fair" rate of return based on the firm's unit costs. Can economic thinking predict how the company executive offices are likely to be furnished? Given a choice between Hawaii and downtown Cleveland (20 miles away), where would we expect the Board of Directors to meet?