If fiscal policy is used to close an expansionary gap, the _____
a. short-run aggregate supply curve shifts leftward and the price level falls
b. short-run aggregate supply curve shifts rightward and the price level increases
c. short-run aggregate supply curve shifts rightward and the price level falls
d. aggregate demand curve shifts leftward and the price level falls
e. aggregate demand curve shifts rightward and the price level falls
d
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Moral hazard is a barrier to financing global growth because
A) of the differences between financing using loans, portfolio investment and foreign direct investment. B) there is the possibility that the funds are used for riskier behavior than the lender agreed to. C) firms sometimes have trouble determining whether they need funds or not. D) if investors have trouble identifying high-risk firms they may be unwilling to give money to creditworthy firms.
If wheat can be produced at a constant opportunity cost, then the supply of wheat is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
An example of a capital resource is: a. stock in a computer software company
b. a bond issued by a company selling electric generators. c. a dump truck. d. an employee of a moving company.
Interest rate parity is more likely to hold in the short run than purchasing power parity
Indicate whether the statement is true or false