In an open economy, the price of a TV will be ________. 
A. $275
B. $125
C. $75
D. $175
Answer: B
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When the Fed acts as a "lender of last resort", like it did in the financial crisis of 2007-2008, it is performing its role of:
A. Controlling the money supply B. Setting the reserve requirements C. Being the bankers' bank D. Providing for check clearing and collection
With an increase in total factor productivity in the Solow growth model,
A) output decreases temporarily and returns to the previous steady state. B) output increases temporarily and returns to the previous steady state. C) the economy reaches a steady state with higher output. D) the economy reaches a steady state with lower output.
If the price elasticity of demand is greater than 1, then consumer demand is
A) unrelated to the elasticity of demand. B) inelastic. C) elastic. D) unitary elastic.
Business cycles are linked to the interaction between:
a. the foreign exchange rate and the balance of payments account. b. the aggregate demand and aggregate supply curves. c. the demand and supply curves for a particular good. d. the substitution and the wealth effect. e. the long-run aggregate supply curve and the aggregate resource curve.