Macroeconomics is concerned primarily with
A) positive economics.
B) production and prices in particular markets.
C) aggregate economic variables.
D) normative issues.
C
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If the prices of both goods increase by 10 percent, the budget line
A. shifts to the right in parallel fashion. B. shifts to the left in parallel fashion. C. is unaffected since only relative price changes matter. D. pivots on the axis of the more expensive good.
The international capital market is
A) the place where you can rent earth moving equipment anywhere in the world. B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. C) the arrangement where banks build up their capital by borrowing from the Central Bank. D) the place where emerging economies accept capital invested by banks. E) exclusively concerned with the debt crisis that ended in the 1990s.
Refer to the above figure. The rightward shift of the curve indicates
A) an increase in demand. B) a decrease in demand. C) an increase in quantity demanded. D) a decrease in quantity demanded.
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in the expected rate of inflation?
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate does not change and the quantity per time period does not change. d. The real risk-free interest rate rises and the quantity per time period is uncertain. e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.