If Brazil experienced a period of rapid and unexpected inflation, causing Brazilians to lose confidence in the local currency (real) as a store of value, which of the following would be least likely to occur?
a. The value of the Brazilian real would depreciate on the foreign exchange market.
b. Foreign currency would be used as a substitute for the real.
c. The real would be used as a store of value in other countries
d. Brazilians would save less.
e. The purchasing power of the real would decrease.
c
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Suppose the demand curve for a good shifts rightward, causing the equilibrium price to increase. This increase in the price of the good results in
A) a rightward shift of the supply curve. B) an increase in quantity supplied. C) a leftward shift of the supply curve. D) a downward movement along the supply curve.
In the short-run Keynesian model, investment is:
A. autonomous in relation to the interest rate. B. upward sloping in relation to the price level. C. downward sloping in relation to disposable income. D. autonomous in relation to real GDP.
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. This commercial bank has excess reserves of:
A. $15,000. B. $27,000. C. $18,000. D. $32,000.
In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about:
A. +3. B. +6. C. - 2. D. +1.