An increase in the real interest rate causes
A) the IS curve to shift to the right.
B) the IS curve to shift to the left.
C) a movement up the IS curve.
D) a movement down the IS curve.
C
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Suppose the price elasticity of demand for Mexican food is 1.23 and the price elasticity of supply is 0.47. If the government imposes a tax on Mexican food, do buyers or sellers pay most of the tax? Why?
What will be an ideal response?
In 1886, the price of a 6.5-ounce glass bottle of Coca Cola was priced at 5 cents. In the case of this size bottle of Coca Cola, the price could be considered
A) as remaining sticky in the short run but flexible in the long run. B) as remaining sticky in both the short run and the long run. C) as being flexible in the short run, but returning to price stickiness in the long run. D) as being flexible in both the short run and the long run.
The smaller the underground economy the more will be the overstatement of the official unemployment rate
a. True b. False Indicate whether the statement is true or false
Dumping involves a country selling its exports
A. to nations without a comparative advantage in producing the products. B. to nations that regularly impose tariffs. C. to nations that have no need for the products. D. at a price lower than its cost of production.