Suppose that U.S. savers decide that holding Brazilian assets has become riskier. What happens to U.S. net capital outflow? What happens to the U.S. real interest rate?
U.S. net capital outflow decreases. The decrease in net capital outflow decreases the U.S. demand for loanable funds, which decreases U.S. interest rates.
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The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is called the
a. producer surplus b. substitution effect c. price discrimination d. income effect e. consumer surplus
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, what is the market price?
A. $50 B. $500 C. $27.50 D. $150
According to classical macroeconomic theory, changes in the money supply affect
a. variables measured in terms of money and variables measured in terms of quantities or relative prices b. variables measured in terms of money but not variables measured in terms of quantities or relative prices c. variables measured in terms of quantities or relative prices, but not variables measured in terms of money d. neither variables measured in terms of money nor variables measured in terms of quantities or relative prices
Refer to Exhibit 2-7. Which of the following statements is true?
A. If the economy's PPF is represented by PPF1, points A and B are productive efficient, while C and D are unattainable. B. Point F is more efficient than point D. C. Points B and D are more efficient than points A and C. D. If the economy's PPF is represented by PPF2, points C and D are productive efficient, while A and B are unattainable.