Other things equal, if the supply of money is reduced:
A. the demand for money will increase.
B. the interest rates will fall.
C. bond prices will fall.
D. investment spending will increase.
C. bond prices will fall.
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The MRS of the indifference curves in the above figure
A) equals 1/2. B) equals 2. C) changes when moving along any one of the curves. D) is constant along a particular indifference curve, but changes from one indifference curve to the next.
Suppose that the exchange rate between the U.S. dollar and the Mexican peso starts out at $0.11 per peso. If the exchange rate then changes to $0.13 per peso, there will be a(n) __________ in the quantity demanded of dollars by Mexicans, and therefore there will be a(n) __________ in the quantity supplied of pesos to the foreign exchange market
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Core inflation is measured because the prices of:
A. nondurable goods fluctuate more frequently than the prices of durable goods; therefore, removing them from the basket prevents potential distortion. B. durable goods fluctuate more frequently than the prices of nondurable goods; therefore, removing them from the basket prevents potential distortion. C. food and energy costs fluctuate frequently and can distort actual changes in the cost of living. D. retail consumption items fluctuate frequently and can distort actual changes in the cost of living.
What can be concluded about the U.S. balance of trade dating back to 1965?
a. During most years, the United States experienced a trade surplus on goods and services.
b. During most years, the value of goods and services imported exceeded the value of goods and services exported.
c. During most years, the United States experienced a positive value for the balance on goods and services.
d. During most years, the value of goods and services exported exceeded the value of goods and services imported.