An event that directly affects firms' costs of production and thus the prices they charge is called
a. a Phillips contraction.
b. an inflationary spiral.
c. a demand shock.
d. a supply shock.
d
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In 2008, the current account balance was -706 billion and the capital and financial account balance was +711 billion. Therefore, the official settlements account balance was ________ and the balance of all payments accounts was ________
A) negative; negative B) positive; positive C) not enough information to determine; most likely negative D) -5; zero E) +5; zero
Critically evaluate the following statement made in favor of the sub-prime loan bailout of mortgage companies who made high interest rate loans to marginal credit-worthy customers
"The government should do everything within its powers to prop up ailing lenders and homeowners, just as they've done in the past with other troubled industries, from airlines to savings and loans"
A normal good is a good for which demand increases as:
a. the income of consumers increases. b. its own price increases. c. the price of close substitutes decreases. d. the total number of consumers increases. e. a reflection of changing consumer tastes.
Which of the following is not considered to be an important determinant of investment?
A. Technological change. B. Expectations. C. Interest rates. D. Current disposable income.