In the open-economy macroeconomic model, if investment demand increases, then
a. net exports and the real exchange rate rise.
b. net exports rise and the real exchange rate falls.
c. net exports fall and the real exchange rate rises.
d. net exports and the real exchange rate fall.
c
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If steel manufacturers expected that the price of steel was going to rise in the next six months, this would
a. have no change in the competitive market for steel b. lead to a decreased demand for steel c. lead to a decreased supply of steel d. increase the future demand for automobiles e. lead to a decrease in the quantity of steel supplied to the market
Suppose you manage a baseball stadium. To pay the salary for a star player, you would like to increase the total revenue from ticket sales. Should you increase or decrease the price of a ticket to increase revenue? Explain
If the nominal interest rate is 8 percent and the real interest rate is 5.5 percent, then the inflation rate is
a. -2.5 percent. b. 0.45 percent. c. 2.5 percent. d. 13.5 percent.
A central bank's purchase of securities made by writing checks on itself will:
A. have no impact at all on the balance sheet. B. only change the composition of its assets. C. decrease the size of its balance sheet. D. increase the size of their balance sheet.