Economists generally believe that
a. buyers and sellers have all the information they can use
b. additional information is costly to acquire
c. decision makers have complete knowledge of all the alternatives available
d. economic decisions result from random behavior
e. decision makers never make mistakes
B
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An increase in government spending will shift the aggregate demand curve to the left
Indicate whether the statement is true or false
Suppose your bank pays you 4 percent interest per year on your savings account, so that $1,000 grows to $1,040 over a one-year period
If prices increase by 1 percent per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year? A) $0 B) $10 C) $30 D) $50
Direct foreign investment has been most critical for China's domestic consumer market
Indicate whether the statement is true or false
If China were to adopt a floating exchange-rate regime, it would:
A. cause the Chinese trade balance to fall. B. cause the U.S. trade balance with China to fall. C. force the U.S. to adopt a fixed exchange rate to maintain the balance of trade. D. de-stabilize the entire world economy.