Refer to the graph shown. Monetary policy that shifts the AD curve from AD0 to AD1 and moves the economy from A to B:
A. increases both real and nominal output in the short run.
B. increases real output but not nominal output in the short run.
C. doesn't increase real or nominal output in the short run.
D. increases nominal output but not real output in the short run.
Answer: A
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If the interest rate in two countries were the same, you would prefer to invest in assets of the country: a. whose currency was likely to appreciate
b. whose currency was likely to depreciate. c. whose currency had the greatest exchange value. d. none of the above; it would not matter what was likely to happen to a country's currency exchange rate.
A Japanese recession will be counteracted by an appreciation of the Japanese yen.
Answer the following statement true (T) or false (F)
Cartels are inherently self-destructive because each member firm has the incentive to cheat on the cartel agreement
What will be an ideal response?
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A) common value B) private value C) Dutch D) second-price