Every point on an open-economy IS curve represents:
A) combinations of interest rates and the supply of money, which result in equilibrium in the money market.
B) combinations of interest rates and levels of production, which result in equilibrium in the goods market.
C) combinations of interest rates and levels of production, which result in equilibrium in the money market, the goods market, and the forex market.
D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.
Ans: D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.
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When a society's economic institutions provide secure property rights, set up a judicial system that enforces contracts and upholds the law, allow private parties to sign contracts for economic and financial transactions, and maintain relatively free
entry into different businesses and occupations, the institutions in the society can be said to be: A) inclusive. B) extractive. C) exogenous. D) exclusive.
Two goods are ________ if the quantity consumed of one increases when the price of the other decreases
A) normal B) superior C) complementary D) substitute
Since the slope of a downward-sloping demand curve is constant, the price elasticity of demand does not change when moving along this line
a. True b. False Indicate whether the statement is true or false
"Trade restrictions such as tariffs and quotas are like a blockade that a nation imposes on its own people." Is this statement true?
What will be an ideal response?