The demand for dollars will increase when
A) real interest rates in the United States fall.
B) U.S. labor productivity increases relative to the world.
C) the world is perceived as more stable than it used to be.
D) U.S. residents develop a taste for more imported products.
Answer: B
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From Equation (7.1 ) in the book, the short-run marginal cost of production is MC = w/MPL. Based on this equation, which of the following statements is NOT true?
A) If the marginal product of labor is constant, then MC is constant. B) If the marginal product of labor is a concave curve, then the MC curve is also concave. C) If the marginal product of labor is a concave curve, then the MC curve is U-shaped. D) MC increases as the marginal product of labor declines.
Of the curves displayed in the graph shown, graph B is most like to be the:
A. MC curve
B. AVC curve
C. AFC curve
D. ATC curve.
Other things the same, a higher real interest rate raises the quantity of
a. domestic investment.
b. net capital outflow.
c. loanable funds demanded.
d. loanable funds supplied.
Figure 33-8
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In Figure 33-8, which of the following points illustrate the expansionary monetary policies of the mid-1990s and the accompanying favorable supply shocks?
A. A to B to C B. B to C to E C. C to B to A D. D to C to E