Assuming no effect on exchange rates, which of the following is likely to happen if the money supply in a country contracts?

A. Rise in the real spending
B. Fall in the inflow of financial capital
C. Rise in the interest rates
D. Decline in the international price competitiveness


Answer: C

Economics

You might also like to view...

Which of the following is true? a. A person's wage or salary is his or her opportunity cost of leisure

b. Any time that is spent working for a paid job is known as the time spent in leisure. c. An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff. d. A person who works more also always get to enjoy more leisure time. e. If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.

Economics

The natural rate of unemployment is the unemployment rate that would exist in the absence of _____

a. structural unemployment b. educated unemployment c. cyclical unemployment d. frictional unemployment e. underemployment

Economics

The article "Samsung Stung by Apple Moves" related to the price cuts for the iPhone indicates that

A. The percentage change in the quantity demanded for the substitute cell phones was increasing less than the percentage change in the price. B. The demand for the iPhone was inelastic. C. The cross-price elasticity for iPhones and other cell phones produced by Samsung was negative. D. Apple lowered the price for the iPhone because the cross-price elasticity between it and the other competitors was positive.

Economics

Refer to the information provided in Figure 3.15 below to answer the question(s) that follow. Figure 3.15Refer to Figure 3.15. The current price of a bag of pretzels is $1.10. You accurately predict that in this market,

A. price and quantity demanded increase, and quantity supplied decreases. B. price and quantity supplied decrease, and quantity demanded increases. C. price, quantity demanded, and quantity supplied decrease. D. price tends to remain constant, and quantity supplied increases.

Economics