A decrease in the confidence that car-buying consumers have in their future income will
A. decrease the supply of borrowable money.
B. increase the supply of borrowable money.
C. increase the demand for borrowable money.
D. decrease the demand for borrowable money.
Answer: D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
In 2011, a number of Canadians purchased homes in Arizona. Which of the following would not be a logical explanation for this?
A) The value of the Canadian dollar relative to the U.S. dollar increased during this time. B) The U.S. dollar appreciated relative to the Canadian dollar during this time. C) The Canadian dollar appreciated during this time. D) The U.S. dollar depreciated during this time.
Assume the United States televison manufacturing industry accuses the Japanese television manufacturers of dumping. Why should consumers not necessarily be worried about this practice?
What will be an ideal response?
Textbook publishers often sell the same or essentially identical books in different countries for different prices. Is this an effective form of group price discrimination?
A) Yes, because the first sale doctrine does not apply to overseas sales B) No, because poor foreign students can't afford the books C) No, because people are allowed to buy the books in one country and sell them in another, making money on the arbitrage opportunity D) Yes, because the textbooks are actually different since they have a different cover and an "international" label on them