Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is CD, then his income
A. did not change but the price of black beans increased.
B. increased.
C. decreased.
D. did not change but the price of black beans decreased.
Answer: C
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A low-productivity country will tend to avoid free trade with a high-productivity country. The low-productivity country will be exploited and lose industries in which it has a comparative advantage
a. True b. False
Unemployment may force families to move to areas with lower-quality education systems and to forgo, or at least postpone, college education
a. True b. False Indicate whether the statement is true or false
Describe the condition that would have a call option in the money. Now describe the condition that has a put option out of the money.
What will be an ideal response?
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and real GDP falls. b. The quantity of real loanable funds per time period and real GDP remain the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period rises, and real GDP remains the same. e. The quantity of real loanable funds per time period rises, and real GDP rises.