When a change in the price level leads to a change in the quantity of net exports demanded, it is called the:
A) international trade effect.
B) export effect.
C) import effect.
D) net export effect.
E) interest rate effect.
Ans: A) international trade effect.
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Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.
The payments in return for labor and capital are _____, respectively.
a. ?profit and rent b. ?rent and wages c. ?interest and profit d. ?wages and interest e. ?profit and wages
The main determinant of the discount rate on a privately issued bank note was:
a. how long the issuing bank had been in operation. b. who was on the issuing bank's board of directors. c. the general reputation of the issuing bank. d. the distance of the issuing bank from the location where the note was being used.
High opportunity costs go hand in hand with high money costs in a properly functioning economy
a. True b. False Indicate whether the statement is true or false