Refer to the table. The equilibrium dollar price of luta is:
Answer the question on the basis of the following table, which indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
A. $10.
B. $8.
C. $6.
D. $2.
B. $8.
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Macroeconomic policymakers do not include
a. the president of the United States. b. the U.S. Congress. c. the president of General Motors. d. the secretary of the U.S. Treasury.
If indicators like weak demand and falling commodity prices caused concern about deflation (falling prices), what could the Fed do to head off the deflationary threat?
a. increase the reserve requirements imposed on banks b. buy bonds in order to expand the money supply c. increase the discount rate d. increase the national debt
Would one expect the imports and exports between two countries to be approximately equal?
What will be an ideal response?
Divya owns a small boutique in a busy neighborhood. She has been thinking of expanding her business hours and hiring a sales associate to work evenings and weekends. She sees on the news that the GDP is down and decides to hold off on expanding her business for the time being. Why?
What will be an ideal response?