Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill?s budget constraint is AC. If the black bean price increases, Bill?s budget constraint will
A. remain at AC.
B. swivel toward AD.
C. swivel toward AB.
D. swivel toward 0D.
Answer: C
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The difference between a bank's assets and liabilities is referred to as:
A) retained earnings. B) gross profits. C) stockholders' equity. D) net profits.
A tariff imposed by the United States on Japanese cars ________ the price of cars in the United States and ________ the quantity of Japanese cars imported into the United States
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Which of the following is true?
A) Employment and unemployment are both coincident with the business cycle. B) Employment and unemployment are both procyclical. C) Employment is procyclical and unemployment is coincident with the business cycle. D) Employment is procyclical and unemployment is countercyclical.
In an economy with perfect capital mobility, if domestic interest rates are above world interest rates then
a. capital outflows will drive domestic interest rates down. b. capital inflows will drive domestic interest rates down. c. current account deficits will drive domestic interest rates down. d. the central bank will have to intervene even if exchange rates are floating.