A country is likely to have investment freedom if the government allows free flow of foreign capital into the domestic economy
a. True
b. False
Indicate whether the statement is true or false
True
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In the above figure, if the interest rate is 8 percent per year, the quantity of money demanded is
A) less than the quantity of money supplied, and the interest rate will change. B) less than the quantity of money supplied, and the demand curve for money will shift. C) greater than the quantity of money supplied, and the supply curve of money will shift. D) greater than the quantity of money supplied, and the interest rate will change. E) greater than the quantity of money supplied, and the demand curve for money will shift.
Government saving is equal to
A) net taxes. B) net taxes minus government expenditures. C) net taxes plus government expenditures. D) private savings minus government expenditures. E) the quantity of investment demanded.
Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas, gasoline, and heating oil prices
Three years later, once the refining capacity was restored, these prices came back down. The restoration of refining capacity should A) move the economy up along a stationary short-run aggregate supply curve. B) move the economy down along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.
A minimum wage in the formal sector will likely
a. reduce the number of formal-sector workers b. increase labor supply and lower wages in the informal sector c. encourage rural-urban migration d. lead to increased mechanization in the formal sector e. all of the above