In an open economy, a shift down and to the left of the IS curve could have been caused by
A) a decline in the foreign real interest rate.
B) an increase in the demand for domestic goods relative to foreign goods.
C) an increase in foreign output.
D) a decline in domestic output.
A
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A highly liquid asset
A) generally has a very limited market for its resale. B) has high transaction costs associated with its sale. C) must be held for a substantial period of time. D) can be disposed of easily without loss of value.
Refer to Figure 10.1. The Nash equilibrium occurs on the ________ page, in the ________ cell
A) Contribute; upper-left B) Contribute; lower-right C) Don't Contribute; lower-right D) Don't Contribute; upper-left
Suppose the nominal interest rate is 2% and the real interest rate is -3%. We can deduce that the rate of inflation is
A) 0%. B) 2%. C) 3%. D) 5%.
Which of the following is not an explicit cost?
a. Salaries. b. Sales taxes. c. Utilities, such as gas and electricity. d. Insurance. e. The firm owner's time.