Figure 10-1
If the price level in Figure 10-1 were 100,
a.
firms would have to lower their prices.
b.
inventories would be accumulating.
c.
shortages of goods would exist.
d.
aggregate quantity demanded would exceed aggregate quantity supplied.
e.
both c and d would occur.
e
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If the bidders at a second-price auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78 b. just under $78 c. $72 d. just over $72
Workers in which of the following countries are often paid less than the U.S. minimum wage?
a. Italy b. Canada c. Poland d. Japan
If UIP holds, the interest rate is 4%, and the foreign currency is expected to appreciate by 3%, then the foreign interest rate is approximately
a) 1% B) 3% C) 7% D) none of the above
A decrease in the marginal propensity to save is likely to
A. Decrease physical capital investment. B. Have no effect on physical capital investment. C. Increase or decrease physical capital investment, depending on magnitude. D. Increase physical capital investment.