If the demand for net exports rises, which of the following happens in the open-economy macroeconomic model?
a. the exchange rate rises
b. the interest rate falls
c. net capital outflow rises
d. All of the above are correct.
a
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Policy B will be judged to be better than another by the Pareto criterion when
a. Policy B is preferred unanimously. b. Policy B would win a majority of votes. c. there is no deadweight loss associated with Policy B. d. any fair minded person would recognize that Policy B is fair and equitable.
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a. The monopolist undersupplies the market and charges too high a price. b. The monopolist is a revenue maximizer not a profit maximizer. c. A monopolist has little incentive to produce efficiently (at a low cost). d. All of the above are true.
The negative slope of the demand curve reflects the:
A. positive relationship between price and quantity demanded. B. proportional relationship between price and quantity demanded. C. inverse relationship between price and quantity demanded. D. inverse relationship between income and quantity demanded.
If a corporate bond with face value of $5,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $4 B) $200 C) $1,250 D) $5,000