How does an expected change in car prices affect consumption?
What will be an ideal response?
Higher car prices in the future prompts some to buy a new car now.
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Figure36-8
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Which of the graphs in Figure 36-8 illustrates the AD–AS shifts associated with an expansionary monetary policy?
A. 1 B. 2 C. 3 D. 4
If decreased government borrowing drives down real interest rates in the United States,
a. private investment will tend to decline. b. the dollar will depreciate leading to an increase in net exports. c. an inflow of capital will cause the dollar to depreciate. d. All of the above are true.
If the interest rate is 5 percent, then receiving $1,000 eight years from now is worth more than receiving $700 today
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. Our balance of payments is the entire flow of U.S. dollars and foreign currencies into and out of the country. B. Our trade balance is just the difference between our imports and our exports. C. Our trade balance has been negative since the mid-1970s. D. None of these statements are false