Monetary policy has short-run effects on which of the following?
A) the level of output but not its composition
B) both the level and composition of output
C) only the price level
D) only the nominal interest rate, not the real interest rate
E) none of the above
B
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Once produced, Nonexcludable goods are _____
a. difficult to keep employees from stealing b. difficult to keep people from consuming without paying for them c. difficult to keep people from consuming at any price d. available to anyone if they want to pay for it
Barter occurs when
a. two people share everything b. one product is exchanged directly for another product c. money is used to buy goods d. money is exchanged directly for other money e. goods are used to buy money
By opening up to foreign markets, two things that countries generally experience are:
A. gaining access to a wide array of new products and saving money through access to cheaper goods. B. gaining access to a wide array of new products and increase in negative trade outcomes with that nation. C. saving money through access to cheaper goods and finding new customers who generally pay less for their products. D. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products.
If the exchange rate between yen and dollars were 120 yen per dollar, when an American purchases a good valued at 600 yen, its cost in dollars would be: a. $5
b. $600. c. $72,000. d. $120.