Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate and GDP Price Index remain the same.
b. The real risk-free interest rate falls, and GDP Price Index falls.
c. The real risk-free interest rate falls, and GDP Price Index stays the same.
d. The real risk-free interest rate rises, and GDP Price Index falls.
e. The real risk-free interest rate rises, and GDP Price Index rises.
.B
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Once a Nash equilibrium has been found in a game:
A. a stable outcome is impossible. B. the players have no incentive to change their choice. C. the players always have an incentive to change their choice. D. no one in the game can be made better off.
The aggregate demand curve is downward sloping because increases in the price level affect people's real wealth, their lending and borrowing activity, and the nation's trade with other nations in such a way that the quantities demanded for the goods and services produced in the economy decrease
Indicate whether the statement is true or false
Data from the Bureau of Labor Statistics show that the largest category of consumer spending is housing
a. True b. False Indicate whether the statement is true or false
Input productivity refers to the amount of output produced per unit of the input.
Answer the following statement true (T) or false (F)