If the interest rate in India increases, how will it affect the net exports of India?
What will be an ideal response?
If the interest rate in India increases, investors will be willing to invest in India. This will cause the demand for Indian rupees to increase. This in turn will cause the rupee to appreciate. An appreciation of the rupee will increase imports in to India and decrease exports from India.
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Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
A) It will have to increase resource supplies. B) It can increase output without giving up another good by employing more resources. C) It is not possible to achieve this unless technology advances. D) It will have to give up production and consumption of some other good.
The CPI may overstate inflation for all the following reasons except
A) problems measuring changes in the quality of goods. B) substitution by consumers towards cheaper goods. C) problems measuring the quality of services. D) changes in Social Security benefits.
Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. If a fake killer whale to be used to scare sea lions away from steelhead and other threatened and commercially valuable species cost $11,000 for the mold and $5,000 for materials for each fake killer whale made, then the variable cost of producing a fake killer whale is:
A. $5,000 B. $16,000 C. $11,000 D. $21,000
The slope of the consumption function is the
A. APC. B. MPS. C. MPC. D. APS.