Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. 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 reserves account in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises
and reserves account becomes more negative (or less positive).
b. The quantity of real loanable funds per time period falls and reserves account remains the same.
c. The quantity of real loanable funds per time period and reserves account remain the same.
d. The quantity of real loanable funds per time period rises and reserves account remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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The base year is 2010. A country only produces MP3 players. The price of an MP3 player in 2008 was $50. The price of an MP3 player was $30 in 2010. The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units
Nominal GDP in 2010 equals A) $500,000. B) $200,000. C) $1,000,000. D) $600,000. E) an amount that cannot be determined without information about real GDP in 2010.
Holmes and Rahe created a Social Readjustment Rating Scale illustrated in the book. They say stresses can mount up leading to:
a. suicide b. illness c. alcoholism d. smoking addiction
Advertising is used by firms in a monopolistic competitive industry to
A) differentiate their product from those of competitors. B) increase brand loyalty. C) increase demands for their individual products. D) all of the above.
If people expect prices to rise in the future, the consumption curve will shift upward
Indicate whether the statement is true or false