If U.S. citizens decide to save a larger fraction of their incomes, the real interest rate
a. decreases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases.
b. decreases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases.
c. increases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases.
d. increases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases.
a
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Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. The total consumer surplus for Lauren and Katy taken together equaled
A) $15. B) $10. C) $40. D) $20. E) $50.
A perfectly competitive market is in long-run equilibrium. At present there are 100 identical firms each producing 5,000 units of output. The prevailing market price is $20. Assume that each firm faces increasing marginal cost
Now suppose there is a sudden increase in demand for the industry's product which causes the price of the good to rise to $24. Which of the following describes the effect of this increase in demand on a typical firm in the industry? A) In the short run, the typical firm increases its output and makes an above normal profit. B) In the short run, the typical firm increases its output but its total cost also rises, resulting in no change in profit. C) In the short run, the typical firm's output remains the same but because of the higher price, its profit increases. D) In the short run, the typical firm increases its output but its total cost also rises. Hence, the effect on the firm's profit cannot be determined without more information.
Which of the following is an in-kind transfer payment?
a. Medicaid b. Social Security c. workers' compensation d. unemployment insurance e. Temporary Assistance to Needy Families
Olives are used to produce olive oil. If the price of olives increases:
A. the demand for olive oil increases. B. the demand for olive oil decreases. C. the supply of olive oil increases. D. the supply of olive oil decreases.