If a country has a floating exchange rate, it means their currency:
A. is set by the government.
B. has a value determined by the market for loanable funds.
C. can be freely traded and their value is determined by the market.
D. All of these statements are true.
C. can be freely traded and their value is determined by the market.
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As the housing bubble collapsed, the cycle of defaults and falling prices began that would ultimately cause home values to:
A. fall by more than 90 percent in the hardest-hit areas. B. stop rising, practically halting the mortgage loan industry for a number of years. C. fall by more than 50 percent in the hardest-hit areas. D. fall by about 25 percent in the hardest-hit areas.
Housing prices peaked in:
a. 1997. b. 2000. c. 2003. d. 2006.
If the demand for workers with doctorate degrees in economics increases, we would expect
a. the wages of economists to increase in the short run and the number of economists employed to increase in the long run. b. the supply of economists to increase in the short run and their wages to rise in the long run. c. a rapid increase in the supply of economists, causing wages to remain constant. d. the wages of economists to decrease in the short run and the number of economists employed to increase in the long run.
A small reduction in government purchases can lead to a sizeable reduction in real GDP because of
A. lower tax revenues. B. the multiplier effect. C. demand-pull inflation. D. increased transfer payments.