The supply of loanable funds is determined by all of the following except
A. Risk.
B. Time preferences.
C. Demand for loanable funds.
D. Interest rates.
Answer: C
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Easy monetary policy will ________ net exports as a result of a ________ currency.
A. increase; stronger B. decrease; stronger C. decrease; weaker D. increase; weaker
Intra-industry trade is the buying and selling of goods within ____________ industry/industries from one country to another.
a. different b. non-competitive c. the same d. multiple
Explain why the current abatement levels for the two sources do not achieve cost effectiveness.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
Assume an economy experiences an increase in productivity that occurs as a result of the more efficient use of existing technologies. Given this information, we would expect which of the following to occur?
A) aggregate demand would not change B) aggregate demand would shift to the right C) aggregate demand would shift to the left D) both the aggregate demand and aggregate supply curves would shift to the left