Unemployment or underemployment of labor might explain why an economy would be operating inside its production possibilities curve (PPC)
a. True
b. False
Indicate whether the statement is true or false
True
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Would consumers benefit more from a tariff or a quota on imports?
What will be an ideal response?
Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D0 to D1?
A) a fall in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a rise in foreign interest rates
A firm's decision to invest in a project is based on the
A) real interest rate and expected total revenue. B) nominal interest rate and expected total revenue. C) nominal interest rate and the expected profit. D) real interest rate and the expected profit.
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.