What impact would the Fed's raising the interest rate have on any inflationary pressure in the economy?
A. An increase in interest rates decreases the money demand, which could slow increases in the price level.
B. An increase in interest rates increases the money supply, which could cause the price level to increase.
C. An increase in interest rates decreases the exchange rate, which causes net exports to rise, generating inflation.
D. An increase in interest rates increases real GDP, which creates inflation in an economy.
Answer: A
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Environmental economics
a. is concerned mainly with the residual flow from economic activity back to nature b. focuses on the flow of resources from nature to economic activity c. recognizes that the flow of residuals back to nature is preventable d. none of the above
If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are ________ and X and Z are ________
A) price inelastic; complements B) complements; substitutes C) substitutes; complements D) price inelastic; income elastic
With a monopolist's outcome, consumer surplus is:
A. higher than that of a competitive market. B. lower than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.
When nations trade, it:
A. only benefits the stronger nation. B. only benefits the weaker nation. C. can benefit all nations involved. D. can only benefit one nation, but we cannot say whichnation without more information.