Which of the following is an accurate difference between durables and nondurables?
a. When GDP rises rapidly, spending on durables soars while spending on nondurables
remains stable.
b. When GDP drops, spending on durables remains stable while spending on
nondurables plummets.
c. When GDP rises rapidly, spending on durables drops while spending on nondurables soars.
d. When GDP drops, spending on both durables and nondurables also plummets.
a. When GDP rises rapidly, spending on durables soars while spending on nondurables
remains stable.
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Currency traders expect the value of the dollar to rise. What effect will this have on the demand for dollars and the supply of dollars in the foreign exchange market?
A) Demand for dollars will decrease, and supply of dollars will increase. B) Demand for dollars will decrease, and supply of dollars will decrease. C) Demand for dollars will increase, and supply of dollars will increase. D) Demand for dollars will increase, and supply of dollars will decrease.
On the graph above, suppose the economy is at point F when there is a permanent positive supply shock. The new long-run equilibrium is at point ________
A) F B) H C) I D) G E) none of the above
The nominal interest rate is
A) the interest rate measured in terms of goods. B) always less than the real interest rate. C) equal to the real interest rate minus the rate of inflation. D) the type of interest rate typically reported in the financial pages of newspapers. E) equal to the expected rate of inflation.
Refer to the information provided in Table 23.9 below to answer the question(s) that follow. Table 23.9
Refer to Table 23.9. Planned investment equals actual investment at
A. all income levels above $300 billion. B. all income levels below $300 billion. C. $500 billion. D. all income levels.