If heavy federal borrowing pushes up real interest rates in the United States, which of the following will most likely result?
a. an inflow of capital and an appreciation in the foreign exchange value of the dollar
b. an outflow of capital and a depreciation in the foreign exchange value of the dollar
c. an inflow of capital and a depreciation in the foreign exchange value of the dollar
d. an outflow of capital and an appreciation in the foreign exchange value of the dollar
A
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If the income elasticity for chocolate chip cookies is 1.84, then chocolate chip cookies are
A) a normal good and income inelastic. B) a normal good and income elastic. C) an inferior good and income inelastic. D) an inferior good and income elastic.
If Greg uses a special glue to make model planes that he sells and the price of his model planes increases, then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________
a. increase; decrease b. decrease; increase c. increase; increase d. decrease; decrease e. increase; indeterminant
Poverty is most likely to decrease in which of the following situations:
A. The population decreases and GDP stays constant. B. Population and the economic growth rate both decrease. C. The size of the labor force decreases. D. Population grows more rapidly than GDP.
In the above figure, what is the quantity of workers that would be hired in a perfectly competitive market?
A. Q1 B. Q2 C. Q3 D. Q4