Explain the difference between: (1 ) the demand for domestic goods; and (2 ) the domestic demand for goods
What will be an ideal response?
The demand for domestic goods represents the demand for goods produced IN a country. This measure will take into account those goods produced domestically and sold abroad (exports) and the fact that some goods purchased domestically were produced abroad (imports). The domestic demand for goods represents the demand for goods by domestic individuals, firms, and government: C + I + G. The difference between the two is NX.
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If the central bank can act as a lender of last resort during a banking panic, banks can
A) call in their loans to their customers and eventually restore the public's faith in the banking system. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
A year over year ________ in the buying power of money means that definitely ________ from one year to the next
A) decrease; the price level increased B) increase; inflation increased C) decrease; inflation increased D) increase; the price level increased E) Both answers A and C are correct.
For many goods, the price elasticity of demand increases over time after a price hike because
A) consumer incomes tend to increase over time. B) inflation increases all prices and incomes over time. C) the ability to find good substitutes for the product whose price rose increases over time. D) All of the above answers are correct.
Oil field workers' wages are directly tied to the world price of oil
a. True b. False Indicate whether the statement is true or false