The classical economists argued that planned saving and planned investment will always be equal because of changes in
A) the level of real disposable income.
B) the interest rate.
C) the price level.
D) wages.
B
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If the exchange rate between the dollar and Japanese yen is below the equilibrium exchange rate, there will be a ________ of dollars, and the exchange rate will ________
A) surplus; fall to the equilibrium level B) shortage; change only when the supply curve shifts leftward C) shortage; rise to the equilibrium level D) surplus; rise to the equilibrium level
According to the liquidity premium theory of the term structure, a flat yield curve indicates that short-term interest rates are expected to
A) rise in the future. B) remain unchanged in the future. C) decline moderately in the future. D) decline sharply in the future.
Taking action to reveal one's own private information is called:
A. screening. B. signaling. C. statistical discrimination. D. proofing.
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Percentage change in nominal GDP during the past year b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current real exchange rate e. Current nominal exchange rate