When individuals use all available information about an economic variable to make a decision, expectations are
A) rational. B) overestimates of reality.
C) underestimates of reality. D) accurate.
A
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A lower price level causes the C + I + G + X curve to shift as a result of a change in all the following EXCEPT
A) an increase in real wealth. B) an increase in foreign spending on domestic goods. C) an increase in aggregate supply. D) a decrease in interest rates.
Assume that European interest rates fall as a result of decreased deficit spending by the governments of the European Union. We would expect all of the following, except:
a. a depreciation of the euro with respect to the U.S. dollar. b. increased European demand for American government securities. c. a higher level of U.S. imports from Europe. d. higher U.S. net exports to Europe. e. higher French exports to the United States.
In the real world, ____ factors that affect demand and supply can change at once.
a. many b. isolated c. no d. psychological
Which of the following are examples of situations with negative network externalities?
A. All of the above B. A crowded beach C. Clothing made to order D. A rare work of art