A rise in the government budget deficit
a. increases the interest rate so in the market for foreign-currency exchange, supply shifts right.
b. increases the interest rate so in the market for foreign-currency exchange,supply shifts left.
c. decreases the interest rate so in the market for foreign-currency exchange, supply shifts left.
d. decreases the interest rate so in the market for foreign-currency exchange supply shifts right.
b
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Of the four sources of external funding for nonfinancial businesses, the least often used in the U.S. is
A) bank loans. B) nonbank loans. C) bonds. D) stock.
The domestic currency value of the foreign currency price of a product is equal to: a. the reciprocal exchange rate between the domestic and foreign currency. b. the reciprocal of the foreign currency price of the product
c. the difference between the foreign currency price of the product and the exchange rate between the domestic and foreign currency. d. the foreign currency price of the product multiplied by the exchange rate between the domestic and foreign currency. e. the reciprocal exchange rate between the domestic and foreign currency divided by the foreign currency price of the product.
Technological advancements cause structural unemployment. However, they help in:
a. lowering the rate of interest in the economy. b. increasing the price level in the economy and hence make business more profitable for the firms. c. improving living standards by giving consumers a greater variety of goods at lower costs. d. raising government's tax revenue. e. raising the aggregate income in the economy.
Which of the following is true of the demand curve faced by a monopolistically competitive firm? a. The demand curve faced by a monopolistically competitive firm is kinked
b. The demand curve faced by a monopolistically competitive firm is downward-sloping. c. The demand curve faced by a monopolistically competitive firm is upward-sloping. d. The demand curve faced by a monopolistically competitive firm is horizontal.