The economy experiences an increase in the price level and an increase in real domestic output. Which is a likely explanation?
a. The stock of capital has increased
b. Interest rates have increased
c. Net exports have increased
d. Wage rates have fallen
c. Net exports have increasedQ
You might also like to view...
Which of the following is the best example of a differentiated product?
A) beets in the local supermarket B) diamonds C) airlines D) running shoes E) electricity
As the exchange rate ________, the ________ is the value of U.S. ________
A) falls; greater; imports B) falls; greater; exports C) rises; greater; exports D) rises; smaller; imports
The largest institutional participants in capital markets are
A) pension funds. B) insurance companies. C) consumer finance companies. D) business finance companies.
Suppose the price of gold is $300 per ounce in the United States and 2,400 pesos per ounce in Mexico. If purchasing power parity holds then, if the price of oil is $25 per barrel in the United States, the price of oil is ________ pesos per barrel in Mexico.
A. 3.125 B. 96 C. 250 D. 200