In an open economy with flexible exchange rates, monetary policy affects consumption and investment by changing the ________ and affects net exports by changing the ________.
A. real interest rate; exchange rate
B. exchange rate; real interest rate
C. growth of domestic real GDP; growth of foreign real GDP
D. inflation rate; unemployment rate
Answer: A
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According to the text, there are three ways the government can help increase the accumulation of knowledge capital. What are they?
A) encouraging the use of trade secrets, expanding student loan programs, and increasing the minimum wage B) reducing taxes on capital, increasing Social Security payments, and lowering the exchange rate C) increasing taxes on firms, eliminating patents, and increasing the minimum wage D) protecting intellectual property rights, subsidizing research and development, and subsidizing education
The insider-outsider model argues that:
a. a firm depends on its insiders to grease the wheels of the organization, to be familiar with routine procedures, to train new employees, and so on. b. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong. c. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate. d. if an employer increases the wage for all workers, then the best workers with the best employment alternatives at other firms are more likely to leave, while the least attractive workers, with fewer employment alternatives, are more likely to stay.
When interest rates in the U.S. decline, we can expect capital:
A. inflows and outflows to increase. B. inflows and outflows to decrease. C. outflow to decrease, and inflow to increase. D. inflow to decrease, and outflow to increase.
A monopoly is most likely to be temporary if the monopoly power is derived from:
What will be an ideal response?