For producers, there is a cost to having flexibility. Carrying excess productive capacity can be an expensive way of overcoming short-run production bottlenecks
Indicate whether the statement is true or false
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The supply of dollars in the foreign exchange market decreases and that means that the supply curve of dollars shifts leftward if
A) the U.S. interest rate differential decreases. B) the expected future exchange rate rises. C) the exchange rate for the dollar rises. D) the U.S. interest rate decreases.
What is the main problem with rules of origin?
What will be an ideal response?
Something that would cause the long-run aggregate supply curve to shift to the right would be:
A. technological advance. B. discovery of a new oil reserve. C. increase in the growth rate of the labor force. D. All of these would shift the long-run aggregate supply curve to the right.
When the Fed buys government securities
A. reserves increase, leading to a decrease in the money supply by an amount more than the purchase of the government securities. B. reserves decrease, leading to a decrease in the money supply by an amount more than the purchase of the government securities. C. reserves decrease, leading to a increase in the money supply by an amount more than the purchase of the government securities. D. reserves increase, leading to a increase in the money supply by an amount more than the purchase of the government securities.