Starting from short-run equilibrium, the following occurs: the money supply increases and labor productivity increases. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises.
B) Real GDP rises and the price level necessarily rises.
C) Real GDP rises and the effect on the price level cannot be determined.
D) Real GDP falls and the effect on the price level cannot be determined.
E) none of the above
C
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The market demand curve
A) cannot show a change in demand for a good. B) is the horizontal sum of individual demand curves. C) is upward sloping. D) cannot show how quantity demanded changes in response to a change in price. E) is the vertical sum of individual demand curves.
Which of the following represents a way in which multinational corporations can protect themselves from exchange rate risks?
A) forward markets B) futures markets C) currency options D) All of the above
Which of the following changes would decrease the present value of a future payment?
a. a decrease in the size of the payment b. an increase in the time until the payment is made c. an increase in the interest rate d. All of the above are correct.
______ representation emphasizes how representatives act for the people and promote their interests.
A. Descriptive representation B. Formalistic representation C. Symbolic representation D. Substantive representation