When the domestic currency buys fewer units of foreign currency, the
A) nominal exchange rate rises.
B) nominal exchange rate falls.
C) real exchange rate rises.
D) real exchange rate falls.
B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor
What will be an ideal response?
Diminishing marginal returns refers to the fact that
a. holding other inputs constant, additional increases in labor lead to smaller changes in output. b. holding other inputs constant, additional increases in labor lead to lower output. c. additional increases in labor always lead to smaller changes in output d. the returns to labor fall as real wages rise.
Which of the following was NOT a function of the First and Second Banks of the United States?
(a) Handling government finances (b) Promoting growth of state banks (c) Helping establish uniform paper currency in the U.S. (d) Keeping state banks in line by presenting their notes