An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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The long run is a period of time
a. during which at least one resource is fixed b. during which all resources are variable c. during which all resources are fixed d. less than one year e. greater than one year
At each value of the domestic interest rate, decreases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase B. decrease; decrease; decrease C. increase; increase; increase D. increase; increase; decrease
Direct marketing is
A) advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders. B) advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio. C) advertising targeted at specific consumers. D) advertising intended to reach as many consumers as possible.
Refer to the diagram of the market for money. The downward slope of the money demand curve D m is best explained in terms of the:
A. transactions demand for money.
B. direct or positive relationship between bond prices and interest rates.
C. asset demand for money.
D. wealth or real-balances effect.