What happens to the real interest rate?
a. It equalizes at 4 percent due to capital movements between the two countries.
b. It equalizes at 5 percent due to capital movements between the two countries.
c. The two interest rates converge at 5 percent.
d. The two interest rates converge at 3 percent.
a. It equalizes at 4 percent due to capital movements between the two countries.
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In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 16 million per year
Over longer periods of time, increases in oil prices provide firms with incentives to explore and recover oil. What does this indicate about the long-run price elasticity of supply for oil?
A) The elasticity coefficient is unstable in the long run because oil supplies may be depleted. B) The elasticity coefficient approaches 0 in the long run as supplies are depleted. C) The elasticity coefficient is likely to be higher in the long run than in the short run. D) The elasticity coefficient is likely to be lower in the long run than in the short run.
A recent research signified the large health benefits of eating cooked tomatoes. Holding other things constant, this will cause
a. The demand curve for tomatoes to shift to the right b. The demand curve for tomatoes to shift to the left c. The supply curve for tomatoes to shift to the right d. The supply curve for tomatoes to shift to the left
When a group of countries agree to share a common currency, they are said to have formed a
A. monetary alliance. B. currency union. C. monetary cartel. D. welfare state.