Which of the following is most influenced by changes in the discount rate?
a. the interest rate paid on savings
b. the commercial loan rate
c. the installment loan rate
d. the mortgage loan rate
b. the commercial loan rate
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What is the significance of the multiplier? What causes the multiplier to be larger or smaller?
What will be an ideal response?
Which has a larger effect on aggregate demand: an increase in government expenditure or an equal sized decrease in taxes? Explain your answer
What will be an ideal response?
An increase in the price level in the United States will reduce imports and increase exports
Indicate whether the statement is true or false
If some industries exhibit increasing returns to scale in each country, we should not expect to see
A) intraindustry trade between countries. B) perfect competition in these industries. C) interindustry trade between countries. D) Either B or C.