For a government to add to the supply of loanable funds, it must
A) borrow.
B) increase its investment demand.
C) have a budget deficit.
D) raise the real interest rate.
E) have a budget surplus.
E
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In the foreign exchange market, which of the following shifts the supply curve of dollars leftward?
A) The current exchange rate falls. B) The expected future exchange rate falls. C) The current exchange rate rises. D) The expected future exchange rate rises. E) None of the above answers is correct.
According to the theory of purchasing power parity, if the inflation rate in the United States is greater than the inflation rate in Canada, explain what should happen to the exchange rate between the U.S. dollar and the Canadian dollar
What will be an ideal response?
Refer to Table 16.1. Which of the following statements is TRUE?
A) Guatemala has an absolute advantage in producing tomatoes. B) Guatemala has an absolute advantage in producing beer. C) Guatemala has a comparative advantage in producing beer. D) Guatemala has a comparative advantage in producing tomatoes. E) all of the above
Insurance companies provide higher insurance premiums to plans with lower deductibles as a way of:
A. reducing the lemons problem. B. avoiding moral hazard. C. screening between types of drivers. D. optimizing information acquisition.