The real exchange rate is equal to the ________
A) nominal rate of exchange plus the domestic level of prices
B) the nominal exchange rate minus the relevant foreign price level
C) nominal exchange rate divided by the domestic plus foreign price levels
D) nominal exchange rate times the domestic price level divided by the foreign price level
D
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In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect and the government now runs a balanced budget,
A) the interest rate will increase from 4 percent to 6 percent. B) there is a surplus of investment funds and the interest rate falls to 4 percent. C) there is shortage of investment funds of $0.4 trillion. D) the equilibrium interest rate is 6 percent and investment is $1.6 trillion. E) the equilibrium interest rate is 4 percent and investment is $1.8 trillion.
Consider the monopsony in the above figure. The monopsony will hire ________ hours per week
A) 200 B) 400 C) 600 D) None of the above answers is correct.
There is no control over price by firms in:
A. pure competition. B. pure monopoly. C. oligopoly. D. monopolistic competition.
If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.
A. producer B. net exporter C. importer and exporter D. net importer