In the above figure, the indifference curves indicate that the two goods are
A) perfect complements.
B) perfect substitutes.
C) ordinary goods.
D) normal goods.
B
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Assuming imperfect capital mobility and a fixed exchange rate, then an expansionary monetary policy
a. results in a balance of payments surplus without a conflict between domestic goals and external balance. b. results in a balance of payments deficit with a potential conflict between domestic goals and external balance. c. will shift the LM curve to the left. d. will have no effect on the balance of payments.
The consumption function has a positive slope while the savings function has a negative slope
a. True b. False Indicate whether the statement is true or false
The purchasing power parity theory is useful in making ____ predictions about exchange rates and their fluctuations
a. long-run b. intermediate-run c. medium-run d. short-run
In the United States from 1935 to 2011 the share of total income earned by the bottom fifth of income earners rose and then fell
a. True b. False Indicate whether the statement is true or false