According to the theory of liquidity preference, holding the supply of real money balances constant, an increase in income will ______ the demand for real money balances and will ______ the interest rate.
Fill in the blank(s) with the appropriate word(s).
increase; increase
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Each of the following would decrease the supply of U.S. dollars, shifting the supply curve for dollars to the left, except:
A. a decrease in U.S. real GDP. B. a depreciation of the U.S. dollar relative to other currencies. C. a decrease in the real interest rate on foreign assets. D. a decreased preference for foreign-made goods.
If a large number of workers are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is
A) overstated. B) understated. C) neither overstated or understated. D) unbiased.
Countries in which one would see a spread of ideas, information, images, and people would be categorized under _____ globalization
a. economic b. social c. ethical d. cultural e. political
Debt grew faster than GDP during and after the recent Great Recession, when the government had to spend more (as for unemployment benefits), while its tax revenue shrank
a. True b. False Indicate whether the statement is true or false