In the Keynesian causal chain, changes in GDP cause changes in the level of interest rates
a. True
b. False
Indicate whether the statement is true or false
False
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John and Jane Smith are both economists who are deciding how to split household chores of cooking and cleaning. They discover that John has a comparative advantage in cooking. Does this discovery tell them anything about comparative advantage in cleaning?
A. No, either one may have a comparative advantage in cleaning. B. Yes, John must also have a comparative advantage in cleaning. C. Yes, Jane must have a comparative advantage in cleaning. D. No, both or neither may have a comparative advantage in cleaning.
A crawling peg is an exchange rate arrangement in which the rate is adjusted in small amounts at fixed, preannounced rates
Indicate whether the statement is true or false
Intermediation entities include which of the following?
(a) Life and fire insurance companies (b) Stock exchanges (c) Mutual saving banks (d) All of the above
Monopolistically competitive firms have an incentive to:
A. create products that are exactly like the competitor's products. B. create products that are easily substituted for the competition's products. C. create products that have a unique feature that makes it difficult to substitute. D. None of these statements is true.