In the Mundell-Fleming model with perfect capital mobility, the domestic interest rates are determined by
a. monetary policy.
b. the IS and LM curves.
c. domestic savings and investment.
d. budget deficits.
e. none of the above.
E
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In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of
A. scarcity and opportunity costs. B. complementary economic goals. C. full production. D. money and real capital.
What would be an example of government good?
A) Jake buys an iPhone. B) The local driver's license office purchases a new digital camera and printer. C) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. D) Donald Trump purchases furniture for his office. E) Rhianna gets a haircut.
At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts and usually buys 2 doughnuts and 1 cup of coffee
On the way to the shop, Hannah finds an extra $2 dollars in change in her car and buys an extra doughnut and cup of coffee. This means A) doughnuts are an inferior good and coffee is a normal good for Hannah. B) doughnuts are a normal good and coffee is an inferior good for Hannah. C) doughnuts and coffee are normal goods for Hannah. D) doughnuts and coffee are inferior goods for Hannah.
One obstacle to the adoption of the export promotion model by countries in other regions is that
A) the Uruguay Round of the GATT forbids many types of export promotion policies. B) the Washington Consensus opposes the spread of this model. C) research and development for new exports is too expensive. D) only noncommercial R&D is permitted under the rules of the GATT. E) industrial monopolies in the high-income countries will block further exports by developing countries.