When the price level is low, resulting in domestic goods being cheaper than imported foreign goods:
A. consumers hold more money.
B. consumers spend less money.
C. the demand for domestic goods will increase.
D. there will be a reduction in import tariffs.
Answer: C
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From the table below, choose the optimum option using marginal analysis
Option Total Cost ($) 1 150 2 100 3 80 4 70 5 90 6 120
Why did the money supply fall during the Great Depression?
a. The monetary base fell throughout the Great Depression. b. The amount of currency fell during the Great Depression. c. The ratio of currency/deposits fell during the Great Depression. d. The money multipier rose during the Great Depression. e. None of the above.
In the foreign exchange market where French francs are traded for Japanese yen, a decrease in the interest rate in France is most likely to cause:
a. a decrease in the yen price of the French franc. b. an increase in the interest rate in Japan. c. an increase in the yen price of the French franc. d. an increase in the demand for French francs. e. an increase in the supply of yen.
Which of the following has been shown to improve the likelihood of accumulating wealth?
a. Earning a college degree b. Investing in bonds and stocks c. Getting married later in life d. Putting money in a checking account