If a German firm buys goods from a U.S. firm with dollars it obtains by exchanging euros for dollars, both U.S. net exports and U.S. net capital outflow increase
a. True
b. False
Indicate whether the statement is true or false
True
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Answer the following statements true (T) or false (F)
1. Concern with the level of employment in the economy is a macroeconomic issue. 2. Microeconomics is a study of aggregates in the economy. 3. An economy’s wealth consists of a multitude of consumer and capital goods. 4. Economic services lack the characteristic of transferability found in economic goods.
The zero-lower-bound problem eliminates the ability of the central bank to use which of the following in implementing policy?
A) open market operations B) discount lending C) the federal funds rate D) the required reserve ratio
When a new good is introduced, consumers have more variety from which to choose, and this in turn increases the cost of maintaining the same level of economic well-being
a. True b. False Indicate whether the statement is true or false
Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be
A. shallower. B. steeper. C. horizontal. D. vertical.