Developing countries have been able to reduce the effect of depreciation on the value of their debt by:
A) issuing debt in U.S. dollars.
B) issuing debt in domestic currency.
C) appreciating their currency.
D) using expansionary fiscal policy.
Ans: B) issuing debt in domestic currency.
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Refer to Figure 7.7. A technological improvement is best represented by:
A. a movement from point a to point b.
B. a movement from point d to point a.
C. a movement from point c to point a.
D. a movement from point c to point d.
What particular characteristic do private goods and common resources have in common?
The marginal rate of substitution measures the:
A. magnitude of the substitution effect. B. total utility received by a consumer when equilibrium is achieved. C. extra utility that a consumer derives from successive units of a product. D. consumer's willingness to substitute one product for another so that total utility will remain constant.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher