The interest rate:
A. is the price of borrowing money for a specified period of time.
B. is expressed as a percentage per dollar borrowed and per unit of time.
C. determines the total amount that must be paid back on a loan.
D. All of these are true.
D. All of these are true.
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Which of the following is not a necessary condition for a flat BP curve?
A) perfect capital mobility B) perfect asset substitutability C) fixed exchange rates D) floating exchanges rates E) Both C and D
Each of the following, except one, can explain why a given job pays a compensating wage differential. Which is the exception?
a. The job requires costly training. b. The job is dangerous. c. The job is in a city with a high cost of living. d. The job requires a very high level of physical exertion. e. An increase in product demand raises the demand for labor in this job.
A sharp rise in household wealth will cause:
a. Aggregate demand to fall b. Aggregate demand to rise c. Aggregate supply to fall d. Aggregate supply to rise
If there is only one domestic automobile manufacturing firm in a small country, will there be a difference in terms of national economic well-being between using a tariff and using a quota to protect the firm? If so, what is the difference? Clearly explain your answer.
What will be an ideal response?