The Federal Reserve has just purchased bonds in the market, carrying out open market operations. In the short run in the Keynesian model, this would cause the foreign real interest rate to ________ and foreign output to ________.
A. decrease; decrease
B. increase; increase
C. increase; decrease
D. decrease; increase
Answer: B
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Human capital refers to the:
A. Stock of knowledge and skills that enables a person to be productive and earn income B. Number of workers in a country's labor force C. Number of labor hours worked in a country D. Schools, highways, and other infrastructure that increases labor productivity
Which of the following statements is true?
A) Macroeconomics studies how individuals make choices. B) Microeconomics is the study of an economy as a whole. C) The study of the inflation rate is covered under microeconomics. D) The study of the unemployment rate is covered under macroeconomics.
If Y = C + Ii, C = 100 + .80Y, Ii = 100, the equilibrium level of income is
a. $200 b. $400 c. $600 d. $800 e. $1,000
Refer to the given data. If the economy was opened to free trade and the world price of $1 prevailed, the price and quantity sold of this product would be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. $1 and 1 unit.
B. $1 and 16 units.
C. $3 and 7 units.
D. $2 and 11 units.