A large open economy's real interest rate will decrease if
A) the expected future marginal product of domestic capital rises.
B) the expected future marginal product of foreign capital rises.
C) there is a temporary positive domestic supply shock.
D) there is a temporary negative domestic supply shock.
C
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
This refers to an increase in government spending that produces a reduction in private spending
A) crowding out. B) investment disappointment. C) social loss. D) deadweight loss.
If managers ensure zero percent product failure, all of the following are true except which one?
A) Obtaining zero percent product failure is not likely to be possible. B) Obtaining zero percent product failure is likely to make the product very expensive. C) The product would never fail. D) Obtaining 100 percent product perfection is likely to be possible.
When both exports and imports are considered, the major advantage of international trade is that it allows us to
a. seclude ourselves from foreign products. b. consume a larger, more diverse quantity of goods and services at lower prices than would otherwise prevail. c. benefit at the expense of less-developed nations d. maintain jobs for workers who would otherwise have little to do.