Which of the following is the most likely result from an increase in a country's government budget surplus?
a. higher interest rates
b. lower imports
c. lower net capital outflows
d. lower domestic investment
b
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Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day
The current estimates of the price elasticity of supply and demand are ? = 1 and ? = -.2 respectively. What will be the effects on the market price and quantity if the U.S. government suddenly decides to purchase an additional 2 million barrels of oil? Assume that the supply and demand curves are linear and the addition consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per day.
A rate of inflation that exceeds the growth rate of money for a country could be explained by:
A. a decreasing velocity of money. B. a growing real economy. C. a constant velocity of money. D. an increasing velocity of money.
You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. The revenue-maximizing output is:
A. 10/63. B. 6.3. C. 5. D. None of the answers is correct.
When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ________
A) increases; falls in the secondary market B) increases; rises in the secondary market C) decreases; falls in the secondary market D) decreases; falls in the primary market