Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. As a result of ________, the equilibrium interest rate increases and the equilibrium output level decreases.
A. a decrease in government spending
B. an increase in the price level
C. an increase in government spending
D. a decrease in the price level
Answer: B
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Assume a nation has a fixed exchange rate, and the central bank lowers the discount rate. What is the net effect on the unemployment rate? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The unemployment rate rises. b. The unemployment rate falls. c. The unemployment is not affected. d. The change in the unemployment rate depends on the degree of international capital mobility.
Using Figure 35.2, the opportunity cost of producing 1 pair of golf shoes in the United States is
A. 1/3 of a baseball. B. 2 baseballs. C. 3 baseballs. D. Less than the opportunity cost in Mexico.
If the reserve ratio is designated by "r," the amount of deposits a bank can lend out is equal to [D × (1 - r)].
Answer the following statement true (T) or false (F)
How does the inability of foreign investors to repatriate profits impact a developing economy?
A. It fosters corruption. B. It inhibits government control of its economy. C. It harms a countries ability to construct infrastructure. D. It inhibits foreign investment.