How would monetary easing by the Bank of Japan affect the value of the yen?
A) It increases it since more people will take out loans at the low interest rates.
B) It reduces it since it reduces demand for yen since Japanese interest rates are now lower.
C) It increases it since it increases demand for yen since Japanese interest rates are now higher.
D) It reduces it since the supply of yen on the foreign exchange market is now lower.
B
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Refer to the above table. Country A has a per capita real GDP of $1000 and B has a per capita real GDP of $10,000. A is growing at a rate of 5 percent a year and B at a rate of 4 percent a year
After 50 years, how much larger is per capita real GDP in B than A? How much is this in real dollars? A) B is 12 times larger, or $230,000 larger on a real per capita basis. B) B is 8 times larger, or $175,000 larger on a real per capita basis. C) B is a little less than 2 times smaller, or almost $20,000 smaller on a real per capita basis. D) B is a little over 6 times larger, or almost $60,000 larger on a real per capita basis.
If the consumption function is C = 90 + 0.75y, then the marginal propensity to save is
A) 0.25. B) 0.75. C) 67.5. D) 90.
A union can induce a rise in equilibrium wages in a unionized industry by
A) not striking. B) successfully increasing the demand for union labor. C) successfully decreasing the demand for union labor. D) reducing the marginal revenue product of firms employing union labor.
The value of cross elasticity of demand between orange soda and grape soda is:
a. negative. b. positive. c. 0. d. between ?1 and 0. e. less than ?1.