A rightward shift of the BP schedule is the result of a(n)
a. increase in the foreign interest rate.
b. decrease in the foreign interest rate.
c. exogenous fall in export demand.
d. increase in import demand.
B
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During recessions, government expenditure automatically
A) rises because of programs such as unemployment insurance and Medicaid. B) falls because of programs such as unemployment insurance and Medicaid. C) falls because of the progressive income tax system. D) rises because of the progressive income tax system.
Briefly describe how the Bretton Woods system operated
What will be an ideal response?
Four banks are offering the same interest rate of 4%. Where do you invest?
A) Bank A compounds interest on a yearly basis. B) Bank B compounds interest on a monthly basis. C) Bank C compounds interest on a daily basis. D) I am indifferent between banks.
Efficiency wage models imply that workers are more productive when they are paid a higher wage, as compared to when they are paid a lower wage
Indicate whether the statement is true or false