In a floating exchange rate system, an increase in the value of the exchange rate could be caused by
a. an increase in taxes.
b. an decrease in government spending.
c. a decrease in the domestic money supply.
d. a decrease in exports.
C
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Governments grant patents to encourage
A) low prices. B) firms to form public enterprises. C) research and development on new products. D) competition.
If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest?
A) -9.5% B) -3.5% C) 1.5% D) 3.5% E) 9.5%
A demand curve shows how quantity demanded changes as the price changes. It implies that
a. only a change in price can shift a demand curve b. everything else that affects demand is assumed to be constant c. quantity demanded is unrelated to price d. economists are concerned only with money e. it is impossible to show how anything but price affects demand
Which of the following is a term referring to those already working for the firm as “insiders” who know the procedures, while the other workers who are recent or prospective hires are “outsiders”?
a. insider-outsider theory b. insider-outsider argument c. insider-outsider contract d. insider-outsider model