What would happen to the value of the dollar if prices in the U.S. increased more rapidly relative to prices in other countries?
What will be an ideal response?
The value of the dollar will decline otherwise the competitiveness of U.S. goods will decline in the global marketplace.
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Everything else held constant, in the market for reserves, when the federal funds rate equals the interest rate paid on excess reserves, raising the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect of the federal funds rate.
How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
A. The demand for beef would increase, increasing beef prices. B. The demand for beef would decrease, decreasing beef prices. C. The supply of beef would increase, decreasing beef prices. D. The supply of beef would decrease, increasing beef prices.
According to the real business cycle theory, ________ decrease the marginal product of labor, which causes real wages and output to decrease.
A. decreases in the money supply B. negative technology shocks C. positive technology shocks D. increases in the money supply
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 20%, Nashbar Bicycle should
A. fund all of the projects. B. not fund any of the projects. C. fund all of the projects except for the purchase of new tablet computers for its sales staff. D. fund only the purchase of new tablet computers for its sales staff.