In the short run, a permanent increase in the domestic money supply
A) has stronger effects on the exchange rate and output than an equal temporary increase.
B) has stronger effects only on the exchange rate but not on output than an equal temporary increase.
C) has weaker effects on the exchange rate and output than an equal temporary increase.
D) has stronger effects on output, but lower effect the exchange rate than an equal temporary increase.
E) has weaker effects only on the exchange rate than an equal temporary increase.
A
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Between 2015 and 2016, the CPI of a small nation rose from 182 to 185. If household incomes rose by 3% during that period of time, which of the following is true?
A) The purchasing power of household income remained constant between 2015 and 2016. B) The purchasing power of household income rose between 2015 and 2016. C) The purchasing power of household income fell between 2015 and 2016. D) The CPI cannot be used to determine how the purchasing power of household income changes over time.
Who does not want a tariff?
(a) Consumers of imported goods (b) Domestic businesses producing goods that compete with the imported goods (c) Politicians trying to garner domestic support from the import-competing domestic industries (d) The federal government
The business-stealing externality states that entry of a new firms imposes a cost on existing firms because they lose customers
a. True b. False Indicate whether the statement is true or false
The process of obtaining funds from private parties such as investors, venture capital investors, or other companies interested in investing in a business is known as
a. factoring b. loan sharking c. private placement d. no-obligation loans e. none of these