In the open-economy macroeconomic model, if for some reason foreign citizens want to purchase more U.S. goods and services at each exchange rate, then
a. the demand for dollars in the market for foreign-currency exchange shifts right.
b. the demand for dollars in the market for foreign-currency exchange shifts left.
c. the supply of dollars in the market for foreign-currency exchange shifts right.
d. the supply of dollars in the market for foreign-currency exchange shifts left.
a
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A rise in the price of a substitute in production for a good leads to
A) an increase in the supply of that good. B) a decrease in the supply of that good. C) no change in the supply of that good; instead there is a change in the quantity supplied. D) a decrease in the quantity of that good supplied. E) no change in either the supply or the quantity supplied of the good.
The net national product (NNP) can be obtained from the GDP by: a. subtracting depreciation
b. subtracting net income of foreigners and depreciation. c. including the net income of foreigners. d. subtracting depreciation and indirect business taxes.
Matilda just graduated from college. In order to devote all her efforts to college, she didn't hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate decreases. b. and the labor-force participation rate both increase. c. increases, and the labor-force participation rate is unaffected. d. and the labor-force participation rate are both unaffected.
Which shift should occur if the Fed raises the discount rate?
A. The aggregate demand curve should shift rightward. B. The investment demand curve should shift rightward. C. The aggregate demand curve should shift leftward. D. The aggregate supply curve should shift rightward.