In which of the following periods did fiscal spending on national defense as a percentage of GDP increase?
a. In the 1990s, after the dotcom bubble burst
b. After World War I
c. In 2007, during the Great Recession
d. In the 1980s, near the end of the Cold War
d
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Levying a tariff on an imported good
A) shifts the demand curve down for the good. B) shifts the supply curve up for the good. C) Both A and B. D) Not enough information to determine.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real exchange rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium. Assume the nominal exchange rate
is stated as: (Domestic currency per foreign currency). a. The real exchange rate rises and monetary base rises. b. The real exchange rate rises and monetary base falls. c. The real exchange rate and monetary base fall. d. The real exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In the long run, monopolistically competitive firms have:
A. excess capacity. B. positive profits. C. minimal average costs. D. homogeneous production.
Relative to explicit price fixing, with implicit price fixing:
A. firms will find it more difficult to figure out why the price leader has set the price that it has. B. the reasons for the price leader's pricing strategy will be more clear and less ambiguous. C. firms face a higher risk of prosecution for antitrust violations. D. consumers will pay higher prices.