U.S. exports tend to decrease when
A. foreign GDPs are rising.
B. the inflation rate in the United States is lower than the inflation rates in other countries.
C. U.S. prices are low relative to those in the rest of the world.
D. economic activity abroad is decreasing.
Answer: D
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In a period of hyperinflation, the velocity of circulation increases because
A) the real interest rate rises. B) households and firms spend money as soon as they receive payment. C) the nominal interest rate decreases. D) money is valuable everyone wants it. E) potential GDP increases.
The primary motive for financial innovation during the regulatory process is
A) profit. B) adherence to the new regulations. C) return to the way business was conducted prior to the new regulations. D) increase coordination with other financial institutions.
Does the Nash equilibrium yield maximum profit?
a. Yes, because they are each getting the maximum payoff b. No, because they could do better by pricing high c. Yes, because they are both making sales d. No, because they both hate selling ice cream
Using the liquidity-preference model, when the Federal Reserve increases the money supply, a. the equilibrium interest rate decreases
b. the aggregate-demand curve shifts to the left. c. the quantity of goods and services demanded is unchanged for a given price level. d. the short-run aggregate-supply curve shifts to the right.