When a nation begins to export a good,
a. the domestic price of that good falls
b. less of that good is produced domestically
c. the domestic producers are made better off
d. the domestic consumers are made better off
e. both domestic and foreign consumers will purchase more of it
C
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For a lender, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption. B) reduces current consumption and has an uncertain effect on future consumption. C) has an uncertain effect on current consumption and increases future consumption. D) has an uncertain effect on both current and future consumption.
Compare the composition of U.S. output in the year 1900 with its composition in the year 2000.
What will be an ideal response?
If the price elasticity of supply is equal to 1, we would say the supply of the item is
A. elastic. B. inelastic. C. unit elastic. D. perfectly elastic.
A decrease in aggregate demand will cause a greater decline in real output the:
A. less flexible is the economy's price level. B. more flexible is the economy's price level. C. steeper is the economy's AS curve. D. larger is the economy's marginal propensity to save.