In this graph, at point e1, price level is ______.
a. inflationary
b. deflationary
c. stable
d. not shown
a. inflationary
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According to new growth theory, as technology becomes more important to growth, so does
A) increasing taxes. B) human capital. C) military spending. D) increasing trade barriers.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the current international transactions balance and monetary base in the context of the Three-Sector-Model? a. The current international transactions balance rises and
monetary base rises. b. The current international transactions balance falls and monetary base falls. c. The current international transactions balance falls and monetary base rises. d. The current international transactions balance and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In the open-economy macroeconomic model, the market for loanable funds equates national saving with
a. domestic investment. b. net capital outflow. c. the sum of national consumption and government spending. d. the sum of domestic investment and net capital outflow.
Ceteris paribus, if incomes increase faster in the United States than in less developed countries, then the currencies of less developed countries should
A. Depreciate, and the dollar should depreciate. B. Depreciate, and the dollar should appreciate. C. Appreciate, and the dollar should depreciate. D. Appreciate, and the dollar should appreciate.