If S = 300, T = 800, G = 1100, and I = 150, this makes net foreign investment
A) 150.
B) -150.
C) 450.
D) 750.
E) -450.
B
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If the price elasticity of demand for cigarettes is 0.55, and the price of cigarettes increases by 10 percent, then the quantity of cigarettes demanded will fall by:
A. 550 percent. B. 55 percent. C. 0.55 percent. D. 5.5 percent.
In periods of inflation, wages generally increase to compensate for higher prices
Indicate whether the statement is true or false
The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two successive one-year bonds
A) risky asset. B) securitization premium. C) term structure. D) risk premium.
If workers push for wages that are beyond what productivity gains can justify ________
A) a temporary negative supply shock ensues driving up prices B) a negative output gap ensues which will lead to higher unemployment if the Federal Reserve does not act C) and the Federal Reserve eases monetary policy aimed at increasing aggregate demand to counter the negative supply shock, a price-wage spiral could ensue D) all of the above E) none of the above