What effect does an expansionary monetary policy in the U.S. have on the foreign trade sector?
A) The lower value of the dollar will decrease exports and increase imports.
B) The lower value of the dollar will decrease imports and increase exports.
C) The higher value of the dollar will decrease exports and increase imports.
D) The higher value of the dollar will decrease imports and increase exports.
B
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The wage rate is the price of a unit of labor. What happens to the quantity of labor supplied if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.
The table below shows data for the United States
Nominal Interest Rate Inflation Rate 2013 5.25 4 2014 5 2 2015 4.5 4.3 Between 2013 and 2014, the real interest rate ________ and caused a ________ the demand for loanable funds curve. A) increased; rightward shift B) decreased; leftward C) increased; movement upward along D) decreased; downward along
Unlike a perfectly competitive firm, a monopolistic competitor does not have a short-run shut-down point
Indicate whether the statement is true or false
Stagflation refers to
a. inflation that rises and falls from year to year. b. increasing output above full-employment levels and thus fueling inflation. c. sluggish production combined with inflation. d. staggered decreases in the money supply designed to lower inflation.