The Fed's actions influence real GDP by changing expenditure plans. Other things remaining the same the lower the real interest rate, the ________ is the amount of consumption expenditure and the _______ is the amount of saving.
Fill in the blank(s) with the appropriate word(s).
greater; smaller
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The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?
A) Figure A B) Figure B C) Figure C D) Figure D
Which of the following has the largest impact on short-run movements in exchange rates?
A) growth rate of exports B) growth rate of imports C) investment opportunities D) changes in the trade deficit
More stable macroeconomic policy does not contribute to less variability in real output
a. True b. False Indicate whether the statement is true or false
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If the market supply curve is given by S3, then we would expect firms to:
A. shut down in the short run. B. exit the market in the long run. C. enter the market in the long run. D. neither exit nor enter the market in the long run.