Do any of the fundamental factors depend on the rate of inflation?
A. Yes, but only in the long run.
B. Yes, both in the short and long run.
C. No, not even in the short run.
D. No, at least not in the long run.
Ans: D. No, at least not in the long run.
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Changes in factors of production that influence economic growth will
A. shift SRAS but not LRAS. B. shift SRAS and LRAS.
When the U.S. interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward
A) rises; increases B) rises; does not change C) falls; decreases D) falls; increases E) rises; decreases
To encourage more investment, Mexico has lowered its tax rates to reduce the user cost of capital. Argentina is unable to pay back its foreign debts, causing its expected future marginal product of capital to fall
Mexico's real exchange rate will ________ and its net exports will ________. A) depreciate; fall B) appreciate; rise C) depreciate; rise D) appreciate; fall
An asset's fundamental value equals
A) its face value. B) its maturity value. C) the market's best guess of the present value of the asset's expected future returns. D) the weighted sum of its market price over the recent past.