The relative price of a textbook is
A) the money price of the textbook divided by the money price of some other good.
B) the price of the textbook compared with what students think it should cost.
C) the amount it cost to make the textbook.
D) what the author earned for writing the textbook.
A
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The term "crowding out" relates to the decrease in
A) consumption expenditure from an increase in investment. B) the real interest rate from a government budget deficit. C) private investment from a government budget deficit. D) saving from an increase in disposable income.
The effective return from a foreign investment is
A) the domestic interest rate plus the forward premium (discount). B) the foreign interest rate plus the forward premium (discount). C) the nominal interest rate minus inflation. D) the real interest rate.
Suppose the economy is in long-run equilibrium. Senator A succeeds in getting taxes raised. At the same time, Senator B succeeds in getting major restrictions on logging removed. In the short run
a. real GDP will rise and the price level might rise, fall, or stay the same. b. real GDP will fall and the price level might rise, fall, or stay the same. c. the price level will rise, and real GDP might rise, fall, or stay the same. d. the price level will fall, and real GDP might rise, fall, or stay the same.
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. Prior to enactment of the federal government's order:
A. grocers were willing to pay less for any California kiwifruit than for any New Zealand kiwifruit. B. grocers were willing to pay more for any California kiwifruit than for any New Zealand kiwifruit. C. grocers were willing to pay more for California kiwifruit that had been harvested at maturity than for any New Zealand kiwifruit. D. California and New Zealand kiwifruit sold for the same price.