According to this Application, why did the recent decrease in oil prices have only a modest effect on economic growth?
A) Consumers may have saved the money that resulted from lower gasoline prices.
B) There was less incentive to produce energy and invest in new capital and equipment.
C) Government spending decreased significantly.
D) Both A and B are correct.
D
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________ markets transfer funds from people who have an excess of available funds to people who have a shortage
A) Commodity B) Fund-available C) Financial D) Derivative exchange
According to Shepherd, the percentage of industries that were effectively competitive in 1988 is approximately
a. 25 percent b. 50 percent c. 64 percent d. 77 percent e. 89 percent
If financial news broadcasts reported that inflation was likely to rise significantly next year, what would most likely happen to the velocity of circulation?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to inflation.
A country which does not devalue when financial markets expect it to will probably suffer
A) a real appreciation of its currency. B) higher interest rates. C) a default on its national debt. D) all of the above E) none of the above