How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?
a. Aggregate supply will decrease, leading to a decrease in real GDP.
b. Aggregate supply will increase, leading to an increase in real GDP.
c. Aggregate supply will increase, leading to an increase in prices and smaller GDP.
d. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.
A
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A) buy; raise B) sell; not change C) sell; lower D) buy; lower E) sell; raise
When the price of a stock rises significantly higher than what can be justified by the dividends the firm can be expected to pay in the future, a(n) _____ is said to have occurred
a. stock market crash b. arbitrage c. stock market bubble d. bull run e. short sale
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A. number of times each dollar is spent in the economy. B. effect of government spending or tax cuts on national income. C. supply of money in the economy. D. effect of household spending on national income.
If net taxes paid by households increase:
A. transfer payments to households will decrease. B. private saving will decrease. C. private saving will increase. D. public saving will decrease.