When the Fed tightens U.S. monetary policy, domestic interest rates ________, making U.S. assets relatively more attractive to foreign investors, and ________ the equilibrium exchange rate.
A. rise; decreasing
B. fall; increasing
C. rise; increasing
D. fall; decreasing
Answer: C
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When the percentage change in quantity demanded is less than the percentage change in price, the demand for the good is ________
A) inelastic B) unit elastic C) perfectly inelastic D) elastic
What is efficiency?
What will be an ideal response?
Markets can exist:
A. only if there are property rights. B. only if there is perfect information. C. with or without property rights. D. only if all goods are private.
An increase in the price of good X will have what effect on the budget line on a normal X-Y graph?
A. An increase in the vertical intercept B. A parallel inward shift of the line C. A decrease in the horizontal intercept D. A parallel outward shift of the line