When the Fed buys bonds in the open market, we can expect the
A) exchange rate to rise and interest rates to fall.
B) exchange rate and interest rates to rise.
C) exchange rate to fall and interest rates to rise.
D) exchange rate and interest rates to fall.
Answer: D) exchange rate and interest rates to fall.
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Which of the following decreases the supply of labor that competes with union labor?
A) an increase in the minimum wage B) an increase in the demand for imported goods C) new laws that restrict immigration D) All of the above would cause a decrease in the supply of labor that competes with union labor.
If economic activity increases, it follows that economic welfare:
A. may increase, decrease, or remain unchanged depending on the nature of the increase in economic activity. B. increases as more goods and services become available. C. does not change since it does not depend on the level of economic activity. D. decreases as more resources are depleted.
Assume that Brazil and Mexico have floating exchange rates. All else held constant, if the price level is stable in Mexico but Brazil experiences rapid inflation then ________.
A. the Brazilian real will appreciate B. the Brazilian real will depreciate C. gold bullion will flow into Brazil D. the Mexican peso will depreciate
Which of the following statements about GDP is correct?
a. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy's labor force. b. Money continuously flows from households to government and then back to households, and GDP measures this flow of money. c. GDP is to a nation's economy as household income is to a household. d. All of the above are correct.