Which of the following would increase net exports in the United States?
A) The United States purchases 500 silver necklaces from Mexico.
B) A Mexican citizen purchases 25 shares of stock in Ford Motor Company.
C) The U.S. government donates $5 million to Mexico to help victims of drought in Mexico.
D) The government of Mexico purchases 500 Ford F-150 pickup trucks from the United States.
D
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If the short-term nominal interest rate is 3.4%, the term structure effect is 1.2%, the default-risk premium is 1.4%, and the expected rate of inflation is 2.7%, the long-term real interest rate will be
A) -1.9%. B) 0.5%. C) 3.3%. D) 8.7%.
Which of the following statements is incorrect?
A. If you can buy the same goods this year as you bought last year with the same money there must have been deflation. B. If you can buy the same goods this year as you purchased one year ago with the same amount of money, prices are stable. C. If you can buy the same goods this year as you bought last year with less money there must have been deflation. D. If purchasing the same goods today that were purchased one year ago requires more money, there must have been inflation.
Measured in terms of farm employment and the number of farms, agriculture has been:
A. a declining industry. B. an expanding industry. C. a stable industry. D. a volatile industry.
A decrease in interest rates caused by a change in the price level would cause a(n):
A. Decrease (or shift left) in aggregate demand B. Increase (or shift right) in aggregate demand C. Decrease in the quantity of real output demanded (or movement up along AD) D. Increase in the quantity of real output demanded (or movement down along AD)