In the open-economy macroeconomic model, net capital outflow rises if
a. either the exchange rate rises or the real interest rate falls.
b. either the exchange rate falls or the real interest rate rises.
c. the real interest rate rises. Net capital outflow does not depend on the exchange rate.
d. the real interest rate falls. Net capital outflow does not depend on the exchange rate.
d
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Households receive transfers from ________ and firms receive transfers from ________
A) government; government B) firms; households C) government; government and households D) firms and government; government E) government; no one
There is an adverse supply shock. In response the Federal Reserve pursues an expansionary monetary policy. Taking into account both the shock and the Federal Reserve's policy, which of the following are we sure of?
a. unemployment will be higher b. unemployment will be lower c. inflation will be higher d. inflation will be lower
Where MPC is the marginal propensity to consume, the formula for the spending multiplier is
What will be an ideal response?
If demand is represented as Qd = 24 - P and supply is represented as Qs = 6 + 2P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________
A. $24; $6 B. $23; $8 C. $30; $3 D. $1; $2