The downward sloping aggregate demand curve can be explained in part through the:
A. wealth effect.
B. negative relationship between the price level and investment spending.
C. negative relationship between the price level and net exports.
D. All of these are true.
Answer: D
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Which of the following are reasons why U.S. residents supply dollars to the foreign exchange market?
i. to buy U.S. exports ii. to buy foreign real estate iii. to buy foreign bonds A) i only B) ii only C) iii only D) i and iii E) ii and iii
The Coase Theorem states that ________
A) positive externalities lead to higher market prices B) negative externalities lead to lower equilibrium output C) transaction costs are higher in free markets D) negotiation between economic agents leads to an efficient allocation of resources
What are the terms of exchange and how are these terms related to the price?
What will be an ideal response?
In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:
a. the fact that their governments follow policies that explicitly work against economic integration. b. racial discrimination. c. the fact that their governments impose extremely high mortgage taxes. d. the establishment of minimum wages. e. the fact that they are too poor to trade anything with the rest of the world.