Due to a recession in the US, the average rate of return on investments is likely to fall causing the demand for US dollar to
a. Increase
b. Decrease
c. Not change
d. None of the above
b
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Refer to Table 5.1. What is Hector's opportunity cost of producing one bracelet?
A) 1/5 of a tiara B) 1.5 tiaras C) 5 tiaras D) 6 tiaras
The real interest rate is equal to the
A) nominal interest rate plus the inflation rate. B) nominal interest rate minus the inflation rate. C) nominal interest rate times the inflation rate. D) nominal interest rate divided by the inflation rate. E) inflation rate minus the nominal interest rate.
If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the participation rate is measured as
A) U/N B) Q/U C) Q/N D) (Q-U)/N
Government debt increases the interest rate and private investment
Indicate whether the statement is true or false