In the open-economy macroeconomic model, a decrease in the domestic interest rate shifts
a. demand in the market for foreign-currency exchange to the right.
b. demand in the market for foreign-currency exchange to the left.
c. supply in the market for foreign-currency exchange to the right.
d. supply in the market for foreign-currency exchange to the left.
c
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A minimum wage
A) increases all workers' surplus because the wage rate increases. B) increases consumer surplus because the price of the good decreases. C) decreases the firms' surplus because fewer workers are hired at the higher wage. D) increases the firms' surplus and the workers' surplus because it increases the efficiency of the labor market. E) None of the above answers is correct.
The term shutdown
a. and the term exit both refer to short-run decisions that a firm might make. b. and the term exit both refer to long-run decisions that a firm might make. c. refers to a short-run decision that a firm might make, whereas the term exit refers to a long-run decision that a firm might make. d. refers to a long-run decision that a firm might make, whereas the term exit refers to a short-run decision that a firm might make.
The Germans and the French were compelled to keep Greece in the euro because
A. they had invested a large amount in the form of bailout packages to Greece. B. they feared that their home currencies would be devalued if Greece opted out of euro. C. they relied heavily on Greece for trade and feared that they would lose their trading partner. D. they feared that the Greek exit would lead to a collapse of the entire euro system.
A U.S. tariff on oil would reduce the domestic quantity of oil demanded.
Answer the following statement true (T) or false (F)