If the interest rates suddenly increase, it could cause a shift in the economy from the prosperity phase to the downturn phase in
a. the innovation cycle
b. the war-induced cycle
c. the housing cycle
d. the real business cycle
e. internal cycles
C
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The current account includes all of the following accounts except
A) net transfers. B) net exports. C) net financial derivatives. D) net factor payments.
All of the following are mechanisms which reduce the adverse selection problem except ____
a. warranties from established enterprises with non-redeployable assets b. high interest rates c. large collateral requirements d. brand names and product-specific promotions and retail displays e. higher prices in repeat customer transactions
The benefit from an additional unit of a good or service that the consumer of that good or service receives is the
A) marginal private benefit. B) marginal external benefit. C) marginal social benefit. D) opportunity cost.
International capital mobility refers to
A) the ease with which manufacturing equipment can be transported across countries. B) the ease with cash may be transferred from one country to another without having to be converted into a foreign currency. C) the ease with which investors move funds among international financial markets. D) the ease with which exchange rates may be adjusted to reflect changes in the relative economic strengths of countries.