Suppose United States net exports are -$50 billion. Then the dollar depreciates. In the short run, the United States may move downward along the J-curve, with net exports _________ and the AD curve shifting to the _______________
A) coming closer to zero; left
B) coming closer to zero; right
C) moving further from zero; left
D) moving further from zero; right
C
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Explain how an import quota might be more inefficient than an import tariff that has the same impact on prices.
What will be an ideal response?
If a bank has a lot of long-term loans, it will probably want to reduce interest rate risk by encouraging __________-term deposits, especially of interest rates are expected to __________ in the future
A) long; rise B) long; fall C) short; rise D) short; fall
Given a fixed nominal interest rate on a loan, unanticipated inflation:
a. decreases the burden of paying off the loan. b. increases the burden of paying off the loan. c. does not alter the burden of paying off the loan. d. benefits savers.
The flatter the demand curve that passes through a given point, the more elastic the demand
a. True b. False Indicate whether the statement is true or false