In the open-economy macroeconomic model, if the U.S. interest rate rises, then U.S
a. net capital outflow rises, so the supply of dollars in the market for foreign exchange shifts right.
b. net capital outflow rises, so the demand for dollars in the market for foreign exchange shifts right.
c. net capital outflow falls, so the supply of dollars in the market for foreign exchange shifts left.
d. net capital outflow falls, so the demand for dollars in the market for foreign exchange shifts left.
c
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Using a production possibilities curve, economic growth is represented by
A) an inward shift of the curve. B) an outward shift in the curve. C) a movement along the curve. D) a pivot of the curve.
The benefit that Joan gets from eating cherries is an example of
A) when the external benefit equals the private benefit. B) a private benefit. C) an external benefit. D) an external cost. E) the marginal social cost of eating cherries.
The value of zero is used to distinguish between elastic and inelastic price elasticity of demand for a product; so, if the elasticity is greater than zero, it is elastic and if it is less than zero, then it is inelastic.
Answer the following statement true (T) or false (F)
With a monetary growth rule as proposed by the monetarists, during a recession the rate of growth of the money supply would
A) not change. B) increase. C) decrease. D) decrease or increase depending on economic conditions.