If the government sells U.S. Treasury bonds to finance its budget deficit, one would expect:
a. interest rates to rise.
b. domestic investment to rise.
c. tax rates to fall.
d. inflation to rise.
e. interest rates to fall.
a
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Refer to Table 14-8. Which of the following is true?
A) Brawny Juice's dominant strategy is to select a high price. B) Power Fuel does not have a dominant strategy. C) Power Fuel's dominant strategy is to select a low price. D) Brawny Juice does not have a dominant strategy.
Believers in a fixed-rule approach to stabilization policy propose that
A. Congress should balance the high employment budget. B. the Fed should keep the money supply growth constant. C. the economy be stabilized by automatic mechanisms. D. All of these responses are correct.
A decrease in interest rates will cause
A. AS to increase (move down and to the right). B. AD to increase (move to the right). C. AS to decrease (move up and to the left). D. AD to decrease (move to the left).
The theory of international exchange that holds that exchange rates are set so that the price of similar goods in different countries is the same is the
A. purchasing power parity theory. B. price feedback theory. C. J-curve theory. D. trade feedback theory.