Why does the LL schedule have a negative slope?
A) The economic stability loss from pegging to the area's currencies rises as the degree of economic interdependence rises.
B) The economic stability loss from pegging to the area's currencies falls as the degree of economic interdependence rises.
C) The economic stability loss from pegging to the area's currencies falls as the degree of economic interdependence falls.
D) The economic stability loss from pegging to the area's currencies rises as the degree of economic activity increases.
E) The economic stability loss from pegging to the area's currencies is constant, even as the degree of economic activity increases.
B
You might also like to view...
Suppose we are considering the relationship between two variables y and x. y is measured on the y-axis and x is measured on the x-axis, and the relationship between then is a straight line. Suppose that the slope of the line is greater than 1
This slope means that A) a change in x is associated with a bigger change in y. B) a change in x is associated with a smaller change in y. C) a change in x is associated with no change in y. D) a change in x is associated with an equal change in y.
The above figure shows Jane's budget line and two of her indifference curves. If the price of a lobster dinner falls so that Jane can now purchase the combination represented by Point B, Jane would experience
A) an increase in the opportunity cost of a lobster dinner. B) no change in her marginal rate of substitution. C) an income and a substitution effect. D) Both answers B and C are correct.
Because of its divisibility, portability, and homogeneity,
a. gold has been a perfect medium of exchange and measure of value b. gold has never been considered an adequate medium of exchange, which is why we switched to fiat money c. wampum is still used as a medium of exchange d. M3 has been considered the perfect currency e. mercury has been a perfect medium of exchange and measure of value
Which of the following results if the U.S. removes an import quota on computer components?
a. U.S. exports and U.S. imports both increase b. U.S. exports increase but U.S. imports are unchanged c. U.S. imports increase but U.S. exports are unchanged d. None of the above are correct