With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
C
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Use the following table to answer the question below. Jorge's Production Possibilities SchedulePounds of Green BeansPounds of Corn03202024040160608080 0 Jorge's opportunity cost of producing 1 pound of corn is ________ pound(s) of green beans.
A. 1/4 B. 4 C. 2 D. 1
What is the law of one price?
What will be an ideal response?
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, Marko's will produce
A) 0 shirts. B) 1 shirt. C) 3 shirts. D) 4 shirts.
Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
A. an oligopoly. B. a perfectly competitive market. C. a monopolistically competitive market. D. a monopoly.