An increase in the price of butter is likely to cause the demand for:
A. olive oil to increase.
B. olive oilto decrease.
C. butter to increase.
D. butter to d.
A. olive oil to increase.
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The United States economy is
A. the third largest in the world. B. larger than all other national economies combined. C. the second largest in the world, behind Japan. D. the largest in the world.
If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then
A) real Gross Domestic Product (GDP) will rise by $100 billion. B) real Gross Domestic Product (GDP) will rise by $200 billion. C) real Gross Domestic Product (GDP) will rise by $400 billion. D) real Gross Domestic Product (GDP) will decrease by $100 billion.
In the long run, the real interest rate is determined by
A) the nominal interest rate. B) saving supply and investment demand. C) the multiplier effect. D) the expected inflation rate. E) Fed actions.
The Asian financial crisis was brought about by:
A. debt crisis. B. exchange rate crisis. C. excessive loss of national resources. D. None of these statements is true.