Under a gold standard,
A. with a balance of payments deficit, interest rates would fall and attract foreign capital.
B. a deficit in the balance of payments increased a nation’s money supply automatically.
C. all currencies were defined in terms of gold.
D. when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out.
E. All of the above are correct.
Answer: C
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Refer to the figure above. What is the equilibrium price and quantity of the light bulbs?
A) Equilibrium price = $25, Equilibrium quantity = 0 units B) Equilibrium price = $25, Equilibrium quantity = 15 units C) Equilibrium price = $15, Equilibrium quantity = 15 units D) Equilibrium price = $5, Equilibrium quantity = 15 units
A 20 percent increase in the quantity of pizza demanded results from a 10 percent decline in its price. The price elasticity of demand for pizza is
A) 0.5. B) 2.0. C) 10.0. D) 20.0.
A decrease in foreign real income would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
In the Keynesian model with both a variable price level and money wage, the aggregate supply function will be
a. upward sloping but flatter than for the variable-price/fixed-wage version of the model. b. upward sloping but steeper than for the variable-wage/fixed-price version of the model. c. vertical. d. horizontal.