A decrease in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
B
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In the prisoners' dilemma, each player is ________ regardless of the other players' actions
A) forced to confess B) forced to deny C) better off confessing D) better off denying E) going to go free
Daniel Hammermesh and Stephen Donald studied the determinants of the earnings of college graduates years after they graduated. Which of the following is one result of their study?
A) Students who took more Advanced Placement (AP) courses while still in high school earned significantly more income for each AP course they passed with a grade of 4 or 5. B) Students who took at least three economics courses earned about 9 percent more income than students who took no college economics courses. C) Students who had taken 15 credits of upper-division science and mathematics courses and earned high grades in these courses earned about 10 percent more than students who took no upper-division classes in these subjects. D) The earnings of identical twins were about 9 percent higher than the earnings of all other students.
The elasticity of output with respect to capital
A) is the increase in output resulting from an increase in the capital stock. B) is the percentage increase in output resulting from a 1 % increase in the capital stock. C) is always greater than one. D) is the inverse of the elasticity of output with respect to labor.
In the contemporary U.S. economy, the best example of fiat money would be
A) coins issued by the U.S. Treasury. B) deposits at all depository institutions. C) deposits at commercial banks, but not deposits at other depository institutions. D) Federal Reserve Notes.