The field of economics that would be most concerned with a recent fall in interest rates is:
A. microeconomics.
B. macroeconomics.
C. marginal economics.
D. economic naturalism.
Answer: B
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After an employer pays the cost of educating a worker,
a. the worker has a higher level of human capital. b. the worker should become more productive. c. the worker might look for another job unless his employer pays him more. d. All of the above are correct.
Assume that a monopoly is producing at a profit-maximizing output level. If the firm's total fixed costs decrease, the firm
A) should lower its price. B) should increase its price. C) should continue to produce at the same level. D) increase its output level.
One would expect the price of a share of stock to fall if
A. expected dividends paid on the stock rise. B. the risk of the business falls. C. the interest rate rises. D. the economy expands.
If the Fed reduces the money supply to reduce inflation, a floating exchange rate will aid the Fed in fighting inflation because
A. as the money supply is decreased, the interest rate will increase, and the price of U.S. exports will fall and the price of U.S. imports will rise. B. as the money supply is decreased, the interest rate will increase, and the price of U.S. exports will rise and the price of U.S. imports will fall. C. as the money supply is decreased, the interest rate will increase, and the price of U.S. exports and U.S. imports will fall. D. as the money supply is decreased, the interest rate will increase, and the price of both U.S. exports and U.S. imports will rise.