Which of the following will happen if the supply of loans increases?
A. The interest rate will rise, and the quantity of money borrowed will decline.
B. The interest rate will fall, and the quantity of money borrowed will increase.
C. The interest rate will fall, and the quantity of money borrowed will decline.
D. The interest rate will rise, and the quantity of money borrowed will increase.
Answer: B
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"Brain-drain" refers to the:
A. Relatively low levels of human capital in low-income countries B. Impact of migration on human capital levels in high-income countries C. Emigration of highly educated workers to higher income countries D. Inability of workers in low-income countries to achieve the levels of human capital possessed by workers in high-income countries.
Larger countries will trade more with one another; this is empirically supported by:
a. the intra-industry trade. b. the increasing returns to scale. c. the gravity equation. d. the comparative advantage.
A surplus item is
A) the import of goods or services that is not needed by residents of a country. B) the import or export of products that are by-products of the manufacturing of export goods. C) any transaction that leads to a receipt by a resident of a country or its government. D) any transaction that leads to a payment by a resident of a country or its government.
Refer to the table above. If planned investment is $18 billion, then at the $660 billion level of disposable income, there will be an:
The data below are for a private (no government) closed economy. All figures are in billions of dollars.
A. Unplanned increase in inventories of $12 billion
B. Unplanned increase in inventories of $30 billion
C. Unplanned decrease in inventories of $12 billion
D. Unplanned decrease in inventories of $30 billion