An increase in the interest rate would ________.
A. increase consumption
B. decrease government purchases
C. decrease investment
D. increase net exports
Answer: C
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What is protectionism in the domestic economy?
a. forcing foreign consumers to subsidize domestic producers b. forcing producers to subsidize consumers c. forcing consumers to subsidize producers d. forcing foreign consumers to subsidize foreign producers
Suppose that Captain Canada can produce 100 hockey sticks or 10 gallons of maple syrup in a typical work week, while Captain Germany can produce 90 hockey sticks or 10 gallons of maple syrup in a typical work week. From these numbers, we can conclude
A. Captain Canada has a comparative advantage in the production of hockey sticks. B. Captain Germany has a comparative advantage in the production of maple syrup. C. Captain Canada has an absolute advantage in the production of hockey sticks. D. All of the above conclusions are correct.
During the Civil War years,
a. the slight stimulus to manufacturing was startling. b. iron production for both small arms and railroads increased rapidly. c. production of boots and shoes in Massachusetts nearly doubled. d. Both b and c are correct.
Suppose the central bank implements expansionary monetary policy where the money supply increases. Which of the following will tend to occur in the long run as a result of this monetary policy action?
A. Output will increase with no change in the price level. B. Output and the price level will both increase. C. an increase in the price level and no change in output D. no change in either the price level or output