Which of the following would be part of the Thai demand for U.S. dollars?
a. A Thai street seller trying to sell a shirt to an American tourist
b. A Thai bank selling dollars it possesses in exchange for euros
c. An American exchanging dollars for Thai bahts that she will spend on her next vacation to Bangkok
d. A Thai export company selling its products in the American markets
e. A Thai importer who wants to buy a Caterpillar tractor
e
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Refer to the figure above. This country's exports equal
A) CE units of X. B) GH units of Y. C) CD units of X. D) DE units of Y.
According to Gordon, a major problem with Keynes' "rigid nominal wage" theory of the business cycle is
A) a horizontal LM curve. B) it is not a market clearing theory. C) falling real wages are not countercyclical with business activity or Y. D) None of the above.
If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity
A. will decrease. B. is constant. C. will increase. D. is unpredictable.
Suppose that Katie and Kelly each expects to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the proposed tax levied on each for the center would be $400, a majority vote
will: A. defeat this project and resources will be underallocated to it. B. pass this project and resources will be efficiently allocated. C. pass this project and resources will be underallocated to it. D. pass this project and resources will be overallocated to it.