If the U.S. dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy up along a stationary aggregate demand curve.
B) This will move the economy down along a stationary aggregate demand curve.
C) This will shift the aggregate demand curve to the left.
D) This will shift the aggregate demand curve to the right.
Answer: C
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Assuming all else equal, a decrease in the real interest rate will cause:
A) an upward movement along the credit supply curve. B) a downward movement along the credit supply curve. C) the credit supply curve to shift to the right. D) the credit supply curve to shift to the left.
Railroads had advantages over canals in all respects except
(a) year-around service. (b) speed of delivery. (c) full access to shipping points. (d) there is no "except"; all of the above were advantages of railroads.
If a country imposes a $10 tariff on a foreign monopolist, the domestic price will rise by:
a. more than $10. b. $10. c. less than $10. d. $0.
Refer to Figure 1A.1. The slope of the line between the points where income equals 50 and income equals 200 is
A) 0.2. B) 5. C) 10. D) 50.