The United States and North Korea don't trade with each other. A decrease in the price level in North Korea
A. decreases the price level in the United States.
B. increases the price level in the United States.
C. does not affect the price level in the United States.
D. at first decreases the price level in the United States, then eventually increases it.
Answer: C
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Bank reserves include
A) vault cash and deposits with the Federal Reserve. B) loans to bank customers and deposits with the Federal Reserve. C) vault cash and loans to bank customers. D) customer checking accounts and vault cash.
For purposes of monetary policy, the Federal Reserve has targeted the interest rate known as the
A) prime rate. B) Treasury bill rate. C) federal funds rate. D) discount rate.
The Classical model
a. is now discredited b. was developed by John Maynard Keynes c. has been completely displaced by the short-run macro model d. helps us to understand the performance of the economy in the long run e. is most useful in helping us to predict when an economic downturn will occur
Based on export ratios, which of the following countries is closest to being a closed economy?
A. Belgium. B. Samoa. C. Saudi Arabia. D. China.