Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model?
a. The quantity of real
loanable funds per time period falls and net nonreserve international borrowing/lending balance becomes more negative (or less positive).
b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive).
c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative).
d. The quantity of real loanable funds per time period and net nonreserve international borrowing/lending balance remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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The demand curve is constructed with a
A. positive slope, because as more is purchased of a good, the cost of producing it rises. B. positive slope, because as buyers have more money, the more of a particular good will be purchased. C. negative slope, because when people purchase more of a good, the cost to produce that good falls. D. negative slope, because with everything else equal, buyers will purchase more of a good when its price is lower. E. positive slope, because as the price rises, people want to sell more of the good.
The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). At the current price of $0.35 per minute, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $1,250.00.
Head Start helps disadvantaged children in their preschool years
Indicate whether the statement is true or false
Which of the following assumptions is crucial to the classical macroeconomic model's assertion that the economy has built-in forces that automatically eliminate unemployment and quickly move the economy to its potential level of real GDP?
A. profit motive B. rigid wages and prices C. flexible wages and prices D. natural rate of unemployment