If the interest rate in the Mexican economy increases, then the most likely outcome would be that, in Mexico, the
a. economy will move to a new point along its existing consumption curve
b. consumption curve will shift upward
c. consumption curve will shift downward
d. investment curve will shift upward
e. economy will move to a new point along its existing investment curve
C
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Define the following terms: a. Recession b. Mixed economy c. Transfer payments d. Progressive taxation
What will be an ideal response?
In actual practice, short-term interest rates and long-term interest rates usually move together; this is the major shortcoming of the
A) segmented markets theory. B) expectations theory. C) liquidity premium theory. D) separable markets theory.
The long-run supply curve of a perfectly competitive market is a:
a. an upward rising step function. b. a downward sloping step function. c. a vertical line at the market price. d. a horizontal line at the market price.
The fact that someone with information about a significant number of illnesses in their family history is likely to purchase health insurance is an example of
a. adverse selection. b. monitoring. c. moral hazard. d. screening.