An office worker who estimates that he would save money by driving to work rather than taking the bus, but who chooses to take the bus because driving in rush-hour traffic frightens him, is
What will be an ideal response?
choosing what is for him the most efficient way to commute.
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During which Presidential administration did the United States both end its commitment to Bretton Woods and institute significant wage and price controls?
a. Dwight Eisenhower b. Richard Nixon c. Jimmy Carter d. William Clinton
Which of the following countries has a long history of foreign trade and a high level of trade?
a. Brazil b. India c. Sweden d. United States
The net worth of a bank is defined as the difference between
a. income and expenses. b. assets and liabilities. c. loans and deposits. d. loans and reserves.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. Real GDP rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. Real GDP falls, and net nonreserve-related international borrowing/lending falls. c. Real GDP falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. There is not enough information to determine what happens to these two macroeconomic variables. e. Real GDP and net nonreserve-related international borrowing/lending remain the same.