How can changes in the market price of wealth previously acquired alter a country's net foreign wealth?
What will be an ideal response?
When Japan's stock market lost value in the 1990s, American and European owners of Japanese asset lost value in their claims, while Japan's net foreign wealth increased. Similarly, exchange rate changes can have this effect. When the dollar depreciates against foreign currency, foreigners who hold dollar assets will see their wealth fall when measured in their home currencies.
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Which of the following is an example of a normative statement?
A. Tom is a college student. B. Immigration should be allowed in the United States. C. The cost of basic health insurance rose from the previous year. D. The federal minimum wage is $7.25.
Choose the pair of words that best completes this sentence: The nominal interest rate is the sum of the ex ante real interest rate and the _________ inflation rate, and real money balances are a function of the ___________ interest rate.
A. expected; nominal B. actual; nominal C. actual; real D. expected; real
Suppose that the current price level is 110, real GDP is $100 billion, and long-run aggregate supply is $95 billion. We can conclude that
A. aggregate demand will increase until both short-run and long-run aggregate supply equal $100 billion. B. the price level will fall and input prices will rise until real GDP pulls long-run aggregate supply up to $100 billion. C. input prices will rise until real GDP is $95 billion. D. the price level will fall until long-run aggregate supply shifts to $100 billion.
At Phil's Pretzel Stand, we found the following:4 laborers produced 66 pretzels5 laborers produced 76 pretzels6 laborers produced 85 pretzels7 laborers produced 88 pretzelsWhat was the marginal product of the sixth laborer?
A. 3 pretzels B. 9 pretzels C. 10 pretzels D. 6 pretzels