Appreciation of the Canadian dollar will:
A. intensify an existing disequilibrium in Canada's balance of payments.
B. make Canada's exports less expensive and its imports more expensive.
C. make Canada's exports more expensive and its imports less expensive.
D. make Canada's exports and imports both more expensive.
C. make Canada's exports more expensive and its imports less expensive.
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The market for "lemons" is one in which
a. the rational buyer discounts b. the seller's product claims are unverifiable at the point of purchase c. "the bad apples drive out the good" d. the problem of adverse selection is rampant e. all of the above
A technological innovation that increases the marginal physical product of capital would eventually result in a(n)
a. increase in the interest rate b. decrease in the interest rate c. shift to the right of the supply curve of loanable funds d. increase in the quantity demanded of loanable funds and a decrease in the quantity supplied of loanable funds, which leaves the interest rate unchanged e. shift to the left of the supply curve of loanable funds
Suppose there are both multiplier and crowding out effects but without any accelerator effects. An increase in government expenditures would
a. shift aggregate demand right by a larger amount than the increase in government expenditures. b. shift aggregate demand right by the same amount as the increase in government expenditures. c. shift aggregate demand right by a smaller amount than the increase in government expenditures. d. Any of the above outcomes are possible.
An economist advising a central bank intending to reduce the inflation rate would likely point out that
a. the costs of reducing inflation persist and the costs of reducing it do not depend on the public's inflation expectations. b. the costs of reducing inflation persist, but they are smaller if the public reduces its inflation expectations. c. the costs of reducing inflation are temporary and the costs of reducing it do not depend on the public's inflation expectations. d. the costs of reducing inflation are temporary and the costs are smaller if the public reduces its inflation expectations.