If the economy in the graph shown is currently at point D, we can conclude the:
A. economy is in an economic boom.
B. government may want to enact contractionary fiscal policy.
C. unemployment rate is likely very low.
D. All of these are likely to be true.
D. All of these are likely to be true.
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As long as trade across borders is unrestricted and exchange rates adjust freely, the purchasing power parity theory predicts that the exchange rate between two national currencies will adjust in the
a. short run because of the actions of arbitrageurs b. long run to reflect differences in the nations' price levels c. long run to reflect changes in the governments' trade policies d. short run because of the actions of speculators e. long run to reflect differences in military power
In mid-2004 there was speculation that the Federal Reserve would be raising interest rates before the end of the year. How would this news affect the bond market and why?
What will be an ideal response?
The quantity demanded of a product increases as:
A. consumer income rises. B. the prices of other products fall. C. the price of the product rises. D. the price of the product falls.
The country reflecting perfect income equality in the above figure is
A) country 4. B) country 1. C) country 5. D) country 3.