Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in exports coupled with a decline in imports
b. a slower inflation rate than those of its trading partners
c. lower domestic real interest rates
d. lower real interest rates abroad
C
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Households will choose to save more if
A) income is expected to decrease in the future. B) current disposable income increases. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
A change in which of the following would NOT shift the supply curve for sneakers?
A) an increase in technology for making sneakers B) an increase in the price of rubber, used to make sneakers C) an increase in the price of sneakers D) None of the above, that is, each change shifts the supply curve
In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit falls, the amount of loanable funds demanded will be
A) less than $450 billion. B) $450 billion. C) between $450 billion and $600 billion. D) greater than $600 billion.
International trade based solely on internal scale economies in both countries is likely to be carried out by
A) monopolists in each country. B) a relatively large number of price competing firms. C) a relatively small number of price competing firms. D) a relatively small number of imperfect competitors. E) a large number of oligopolists in each country.