What should be the impact on aggregate expenditures from an increase in the real interest rate?
A. It should increase
B. The impact is indeterminate
C. It should decrease
D. It should remain constant
Answer: C
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Which of the following contributed to the emergence of hyperinflation in Germany in the early 1920s?
A) payment of massive war reparations required by the Versailles Peace Treaty B) huge budget deficits financed by printing paper money C) decreased desire to hold money on the part of the German people D) All of the above
The current international financial system is a managed float system
a. True b. False
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point Y is ________, and point V is ________.
A. efficient; efficient B. efficient; inefficient C. inefficient; inefficient D. inefficient; efficient
If a firm expects that the price of its product will be lower in the future than it is today
A) the firm has an incentive to increase supply now and decrease supply in the future. B) the firm has an incentive to decrease supply now and increase supply in the future. C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. D) the firm will not change supply until it knows for certain what will happen to its price.