If the dollar falls in value compared to other currencies, what will happen in the United States?
a. a decrease in aggregate demand
b. an increase in aggregate supply
c. a decrease in aggregate supply
d. a decrease in the U.S. price level
c
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The ebbs and flows of the economy over time is called the
A) yield curve. B) business cycle. C) competitive market process. D) CAPM.
According to the traditional (crowding-out) view, which of the following is most likely to result if a substantial portion of government expenditures is financed by borrowing rather than taxation?
a. no change in interest rates and an increase in saving b. higher interest rates and an outflow of foreign capital c. higher interest rates and a reduction in private domestic investment d. lower interest rates and an inflow of foreign investment
Which of the following statements is NOT correct about information?
A. It is always desirable for some people to have more information than others. B. Information plays an important role in how the economy functions. C. Adverse selection will not occur if there is full information given to all market participants. D. Asymmetric information may lead to the disappearance of a market.
A phrase coined by John Maynard Keynes to describe investors' feelings is "Animal Spirits."
Answer the following statement true (T) or false (F)