A decrease in the market interest rate, other things constant, will result in:
a. a rightward shift of the money demand curve
b. a leftward shift of the money demand curve.
c. an increase in the slope of the money demand curve.
d. a movement up along the money demand curve.
e. a movement down along the money demand curve.
e
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Economists would describe a labor union as a
a. trade organization. b. necessity for competitive labor markets. c. labor monopoly. d. pure monopsony.
Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S. goods buys)?
a. an increase in the number of Kenyan shillings that can be purchased with a dollar b. an increase in the price of U.S. goods c. a decrease in the price in Kenyan shillings of Kenyan goods d. All of the above are correct.
Which of the following is an advantage of automatic stabilizers?
A) The lag for automatic stabilizers is relatively long. B) It is much easier to measure the impact of automatic stabilizers compared to the impact of discretionary fiscal policy. C) There is no administrative cost to implementing automatic stabilizers. D) Because they affect disposable personal income directly, automatic stabilizers act swiftly to reduce the degree of changes in real GDP.
You use $2,000 of your own money to start a dog-sitting service. During the first year you earn a 10% return on your investment. If the current interest rate is 7%, you earn an economic profit of
A. $60. B. $140. C. $200. D. $340.