Which of the following events will most likely cause an increase in both the price level and rGDP?
A) The prime rate increases
B) Exports increase
C) Income taxes increase
D) Crude oil prices decrease
E) Inflationary expectations decrease
Ans: B) Exports increase
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The money supply is ________ related to expected deposit outflows, and is ________ related to the market interest rate
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
In the open-economy ISLM model, net export is specified as a function of and exchange arte is specified as a function of
A) output; output. B) money supply; interest rate. C) exchange rate; interest rate. D) exchange rate; money demand.
If a regulatory board wanted to make sure that a natural monopoly earned a normal rate of return, it should set price which is equal to: a. marginal cost
b. average fixed cost. c. average variable cost. d. average total cost.
Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects. The marginal cost and the marginal benefit of each of the four projects is provided in the table.ProjectMarginal Cost ($B)Marginal Benefit ($B)A12B33C57D78Refer to the above table and information. What is the net benefit of undertaking all four projects?
A. $4 billion B. $3 billion C. $2 billion D. $5 billion