If prices are inflexible, then a negative demand shock will lead to:
A.
A short-run increase in real GDP
B.
A short-run decrease in real GDP
C.
A short-run decrease in prices
D.
No change in real GDP in the short run
B.
A short-run decrease in real GDP
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The balance of trade is derived by subtracting merchandise imports from merchandise exports
Indicate whether the statement is true or false
Prediction of stock share prices is relatively straightforward, given information about corporate earnings and number of shareholders
Indicate whether the statement is true or false
Clarity Bank has a money multiplier of 12. If Ayesha deposits $75,000 into her account at Clarity, her money could potentially create ______ in new money.
a. $6,250 b. $75,000 c. $900,000 d. $583,333
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25When Erie Textiles operates without a filter, the total gain (in thousands of dollars) to all three parties is ________.
A. $985 B. $510 C. $325 D. $475