As the price level falls, ceteris paribus, people holding some of their wealth in monetary form become
A) less wealthy and they buy less.
B) more wealthy and they buy more.
C) less wealthy and they buy more.
D) more wealthy and they buy less.
B
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A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from
A) consumers to producers. B) producers to consumers. C) producers to government. D) government to consumers.
Compared with the recovery from the recession of 1981-82, the recovery from the recession of 2008-09 was characterized by
a. more rapid growth of real GDP. b. a more rapid decline in the rate of unemployment. c. larger increases in both government spending and budget deficits as a share of GDP. d. higher interest rates and a more restrictive monetary policy.
In comparing the changes in actual budget surplus and the structural surplus between 1993 and 1999, it is clear that the
A. actual surplus rose less than the structural surplus. B. actual surplus and the structural surplus rose about the same. C. actual surplus rose much more than the structural surplus. D. tax increases of 1993 decreased the structural surplus more than they decreased the actual surplus.
Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil. We can conclude that
A) Honduras also has an absolute advantage in producing bananas relative to Brazil. B) Honduras has a lower opportunity cost of producing bananas relative to Brazil. C) Brazil has an absolute disadvantage in producing bananas relative to Honduras. D) Labor costs are higher for banana producers in Brazil than in Honduras.