If the equilibrium interest rate is 4% but the current interest rate is 6%,
a. bond prices will rise.
b. money demand will decrease.
c. money demand will increase.
d. bond prices will fall.
e. the money supply will decrease.
A
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Which of the following is evidence of a shortage of chocolate?
A) The price of chocolate is raised in order to increase sales. B) Firms lower the price of chocolate. C) The equilibrium price of chocolate falls due to a decrease in demand. D) The quantity of chocolate demanded is greater than the quantity supplied.
If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
a. money means more to Allison. b. money means more to Brad. c. Brad is richer than Allison. d. Allison is richer than Brad. e. nothing, since we can't make interpersonal utility comparisons.
Suppose the same basket of goods costs $100 in the U.S. and 50 pounds in Britain. According to purchasing power parity, if the two countries' price levels do not change, what will be the exchange rate?
a. 2 dollars/pound b. 4 dollars/pound c. 5 dollars/pound d. 0.50 dollars/pound e. 50 dollars/pound
According to new growth theory, discovering and implementing new __________ is what causes economic growth
A) ways of managing personnel B) manufacturing techniques C) ideas D) resource sources E) none of the above