When the U.S. interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward
A) rises; increases
B) rises; does not change
C) falls; decreases
D) falls; increases
E) rises; decreases
D
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Which of the following is NOT a cause for an oligopoly to exist?
A) economies of scale B) structural dependence C) barriers to entry D) horizontal mergers
The ________ the reserve ratio, the ________ the money multiplier.
A) smaller;larger B) smaller;smaller C) larger;larger D) None of the above are correct
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP falls, and nominal value of the domestic currency rises. b. Real GDP falls, and nominal value of the domestic currency remains the same. c. Real GDP rises, and nominal value of the domestic currency rises. d. Real GDP falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
Two types of private solutions to the problem of externalities are
a. charities and the Golden Rule. b. charities and subsidies. c. the Golden Rule and taxes. d. taxes and subsidies.