Faster growth rates by a major trading partner, combined with an increase in stock market wealth, would have what effect on aggregate demand?
a. AD would increase
b. AD would decrease.
c. AD would stay the same.
d. AD could either increase or decrease, depending on which change was of a greater magnitude.
a
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Everything else equal, if the dollar depreciates against the peso:
A) U.S. exports and imports will both decrease. B) the U.S. will import more and export less. C) U.S. exports and imports will both increase. D) the U.S. will export more and import less.
All of these are true, except
a. If production exhibits diseconomies of scope, firm should pair down production line to reduce costs. b. If production exhibits diseconomies of scope, firm should pair up production line to reduce costs. c. If production exhibits economies of scope, firm should pair up production line to reduce costs. d. If production exhibits economies of scope, firm should pair down production line to increase costs.
The assumption of rational self-interest does not rule out the possibility of concern for other individuals
a. True b. False
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be decreased by a constant rate year after year
a. True b. False Indicate whether the statement is true or false