Which of these is NOT an exercise in general equilibrium analysis?
A) A discussion of factors within the wheat market that influence wheat prices
B) An analysis of the effects of changes in oil prices upon the natural gas market
C) An evaluation of relationships between the markets for tires and automobiles
D) none of the above
A
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In the late 1990s, debt-financed government spending decreased in Mexico. Following this decrease, consumption spending increased. Ricardian equivalence would explain this increase in consumption as the result of:
a. people's expectation of higher future taxes required to pay off government debt. b. people's expectation of lower future taxes that induce them to save less. c. automatic stabilization of the economy. d. the crowding out effect. e. an increase in current household disposable income.
Which of the following is an example of a speculative attack on a currency?
a. National governments decide to engage in competitive devaluations against a given country. b. International organizations such as the WTO and the IMF attempt to reorder the currency's system. c. Private investors sell domestic currency and buy foreign currency, betting that the domestic currency will soon be devaluated. d. Casinos in Las Vegas allow the proliferation of bets for and against a given currency. e. A country is at war, and the enemy country "freezes" all the accounts denominated in the local currency.
When taxes increase, interest rates
a. increase, making the change in aggregate demand smaller. b. increase, making the change in aggregate demand larger. c. decrease, making the change in aggregate demand smaller. d. decrease, making the change in aggregate demand larger.
In the Staples case discussed in this? chapter, the data showed that competition with Office Depot led to lower prices?, suggesting that a merger would harm competition .
In the Staples case discussed in this? chapter, the data showed that competition with Office Depot led to
prices?, suggesting that a merger would harm