In a world where capital moves rapidly across national boundaries, if a larger budget deficit leads to higher real interest rates,
a. there will be an inflow of foreign capital, which will cause the dollar to appreciate and net exports to decline.
b. there will be an outflow of foreign capital, which will cause the dollar to depreciate and net exports to increase.
c. there will be an inflow of foreign capital, which will cause the dollar to depreciate and net exports to increase.
d. there will be an outflow of foreign capital, which will cause the dollar to appreciate and net exports to decline.
A
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All of the following means were used to reduce problems associated with the circulation of commercial bank notes except:
a. a pledge by the Treasury to accept all bank notes issued by state-chartered banks. b. anti-counterfeiting associations formed by commercial banks. c. bank note reporters and counterfeit detectors, such as Thompson's Reporter and Hodges' Bank Note Safeguard. d. note brokers who bought and sold commercial bank notes.
Which of the following statements is true?
a. A company can manipulate uncontrollable factors to increase the demand for its product b. A company can manipulate uncontrollable factors to increase the supply of its product c. A company cannot manipulate uncontrollable factors to increase the demand for its product d. A company cannot manipulate controllable factors to increase the demand for its product
Rent-seeking behavior imposes no costs on society because it is elected officials who actually make public sector decisions
a. True b. False
How does a profit-maximizing firm that is operating in a competitive labor market respond to an increase in the wage rate?
A. The firm will demand more labor due to the substitution effect. B. The firm will produce less output due to the scale effect. C. The firm will demand less capital due to the substitution effect. D. The firm will demand more capital due to the scale effect. E. The firm will demand more labor due to the scale effect.