Suppose the price level in Germany falls, ceteris paribus. This _________________ United States net exports, ultimately shifting the United States AD curve __________________
A) stimulates; rightward
B) stimulates; leftward
C) depresses; rightward
D) depresses; leftward
D
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If gold miners expect the price of gold to be 100% higher one year from now, they will probably
A) decrease the supply of gold they bring to market now. B) increase the supply of gold they bring to market now. C) increase the quantity supplied of gold, but supply will remain unchanged. D) do none of the above.
In an open economy, there should be a close positive relationship between
a. budget deficits and interest rates. b. trade deficits and budget deficits. c. savings and investment. d. investment and consumption. e. none of the above.
Information asymmetry is a problem when:
A. a buyer and seller have aligned incentives. B. a buyer and seller have opposing incentives. C. a market is highly efficient. D. a market is highly inefficient.
New classical economists believe that:
a. market failure on a large scale is possible. b. disequilibrium in commodity markets demand government intervention. c. people are completely aware and informed about everything that is happening. d. wages are fixed in the short run. e. people purposefully substitute non-labor activities for work during recession.