How do macroeconomists differ from microeconomists?
a. the basic tools of analysis
b. the underlying principles
c. the use of abstractions and models
d. the problems studied
e. All of the above are correct.
d
You might also like to view...
If a good is normal, then an increase in income will result in a(n)
a. increase in the demand for the good. b. decrease in the demand for the good. c. movement down and to the right along the demand curve for the good. d. movement up and to the left along the demand curve for the good.
Labor unions in the United States
A. tend to be more outspoken politically than those in Europe. B. have experienced steady declines in membership since the 1950s. C. tend to be more powerful in deregulated industries (e.g., airlines) than in regulated industries. D. universally support socialist principles.
From the late 1990s into the early 2000s, Hong Kong suffered from deflation. Most economists believed that the period of deflation ended and that inflation would begin to pick up slowly. Prices, however, were believed to be held in check because the Hong Kong dollar is pegged to the U.S. dollar. What does the monetary authority in Hong Kong have to do to peg its dollar to the U.S. dollar?
A. It will sell Hong Kong dollars when the price of the Hong Kong dollar rises and buy them when the price of the Hong Kong dollar drops. B. It will raise tariffs when the value of the Hong Kong dollar falls and lower them when the value of the Hong Kong dollar rises. C. It does not allow free trade in U.S. dollars; the foreign exchange market is illegal. D. It will sell Hong Kong dollars when the price of the Hong Kong dollar drops and buy them when the price of the Hong Kong dollar rises.
Explain what is meant by liquidity preference
What will be an ideal response?