In the absence of the Ricardo-Barro effect, an increase in the government deficit results in a ________ real interest rate and a ________ equilibrium quantity of investment
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
B
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Which of the following tools and concepts is useful in the analysis of international trade?
a. total surplus b. domestic supply c. equilibrium price d. All of the above are correct.
If there is a surplus of loanable funds, then
a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium. b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium. c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium. d. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium.
When a new product is introduced in the market, a consumer always wants to see how popular the item becomes before she purchases it. The consumer's behavior is known as
A) overt collusion. B) limit-pricing. C) a network effect. D) a rational decision.
According to the text, how has the global shift in economic growth occurred since 2000?
A. High economic growth has shifted from emerging nations to developing nations. B. Emerging and developing nations have experienced negative economic growth rates while advanced nations have continued to experience high economic growth rates. C. Economic growth has shifted downward for all nations in the world. D. High economic growth has shifted from advanced nations to emerging nations.