When there is political instability in another country, the United States can expect
A. a decrease in the balance of payments due to a decrease in official reserve transactions.
B. an increase in the financial account balance due to the movement of assets to the U.S.
C. an increase in the financial account balance due to an increase in the current account.
D. a decrease in the balance of payments due to a decrease in the demand for goods and services.
Answer: B
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Wendy spends $30 a week on movies and magazines. The price of a movie is $8, the price of a magazine is $2, and Wendy sees 3 movies a week and buys 3 magazines
The price of a magazine now increases to $4 and Wendy's brother gives her $6 a week so that she can still see 3 movies a week and buy 3 magazines. In this situation, Wendy will see ________ movies and buy ________ magazines. A) 3; 3 B) less than 3; less than 3 C) more than 3; fewer than 3 D) less than 3; more than 3
Which of the following is FALSE?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, raise prices on both the products c. After acquiring a complementary product, raise prices on both the products d. All of the above
According to the above figure, a shortage will occur at a price at which
A. quantity supplied exceeds quantity demanded. B. government sets a price above equilibrium. C. quantity demanded exceeds quantity supplied. D. quantity demanded equals quantity supplied.
When inflation has not been very persistent, as was the case in the United States before the mid-1960s, we can expect that
A) the expected price level for a given year will equal the previous year's actual price level. B) the current inflation rate will not depend heavily on past years' inflation rates. C) lower unemployment rates will be associated with higher inflation rates. D) all of the above E) none of the above