36) Rising housing prices in Toronto and Vancouver would lead to an a) increase in the...
36) Rising housing prices in Toronto and Vancouver would lead to
an
a) increase in the supply of dollars and a rise in the real
exchange rate
b) decrease in the demand for dollars and a fall in the real
exchange rate
c) decrease in the supply of dollars and a drop in NX
d) a drop in NX and rise in the real exchange rate
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36) Rising housing prices in Toronto and Vancouver would lead to
an
a) increase in the...
An increase in the value of the dollar will lead to a. an increase in aggregate...
An increase in the value of the dollar will lead to a. an increase in aggregate supply as foreign input prices fall. b. a decrease in aggregate demand as net exports decline. c. an increase in real GDP. d. a decrease in real GDP. e. All of the above are theoretically possible.
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of...
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of the following curves would this quota shift? a. supply of loanable funds left b. demand for loanable funds left c. demand for Canadian dollars right d. supply of Canadian dollars left 8. Suppose the Canadian government imposed import quotas on agricultural products. According to the foreign-currency exchange market diagram, which of the following outcomes would most likely result? a. Both the demand and supply curves...
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices...
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices are rising and at the same rate. C.prices on average are rising, although some particular prices may be falling. D. real incomes are rising 36. The annual rate of inflation can be found by subtracting A. the real income from the nominal income. B. last year's price index from this year's price index C. this year's price index from last year's price index and...
Which one of the following would cause an increase in the aggregate supply?
QUESTIN 18 Which one of the following would cause an increase in the aggregate supply? a. insecurity about jobs and future income. b. improvements in economic conditions in other countries. C. a decrease in labor supplied d. new discoveries of raw materials QUESTIN 19 Which one of the following statements is correct? I. A drop in the foreign exchange value of the dollar would increase aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand a. I only b. Il only c. Both I and II d....
2. When aggregate demand increases, what happens to prices and employment? a. Prices will fall and...
2. When aggregate demand increases, what happens to prices and employment? a. Prices will fall and unemployment will rise. b. Prices and unemployment fall. Prices and unemployment rise. d. Prices will rise and unemployment will fall. c. Figure 16-1 a Price Level Inflation Rate c d e 3 Output Unemployment 3. Refer to the Figure 16-1. If the economy starts at c and 1, then in the short run, where does an increase in government expenditures move the economy? a....
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
Of the following,when would the U.S. exchange rate fall the most? A. When the supply of...
Of the following,when would the U.S. exchange rate fall the most? A. When the supply of U.S. dollars increases and the demand for them decreases. B. When the supply of and demand for U.S. dollars decrease. C. When the supply of U.S. dollars decreases and the demand for them increases. D. When the supply of and demand for U.S. dollars increase.
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates rise, so firms decrease investment. c. Interest rates fall, so firms increase investment. d. Interest rates fall, so firms decrease investment. 44. Which of the following shifts money demand to the left? a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate 45. If the world real interest rate exceeds the Canadian real interest...
[10] Which of the following would increase the value of the British pound when compared to...
[10] Which of the following would increase the value of the British pound when compared to the U.S. dollar? A) A decrease in the U.S. demand for pounds. B) An increase in the U.S. demand for pounds. C) An increase in the supply of pounds to persons holding U.S. dollars. D) None of the above. [10A] When the value of the dollar drops in comparison to other nations' monies: A) foreign-made products become more expensive to U.S. buyers. B) U.S.-made...
Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a...
Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a decrease in aggregate supply. The result will be a Select one: a. rise in real GDP but price level changes will be indeterminate. b. rise in real GDP and a fall in the price level. c. an indeterminate change in real GDP and a rise in the d. an indeterminate change in real GDP and a fall in the price level e. rise in...
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices are rising and at the same rate. C.prices on average are rising, although some particular prices may be falling. D. real incomes are rising 36. The annual rate of inflation can be found by subtracting A. the real income from the nominal income. B. last year's price index from this year's price index C. this year's price index from last year's price index and...
2. When aggregate demand increases, what happens to prices and employment? a. Prices will fall and unemployment will rise. b. Prices and unemployment fall. Prices and unemployment rise. d. Prices will rise and unemployment will fall. c. Figure 16-1 a Price Level Inflation Rate c d e 3 Output Unemployment 3. Refer to the Figure 16-1. If the economy starts at c and 1, then in the short run, where does an increase in government expenditures move the economy? a....
Of the following,when would the U.S. exchange rate fall the most? A. When the supply of U.S. dollars increases and the demand for them decreases. B. When the supply of and demand for U.S. dollars decrease. C. When the supply of U.S. dollars decreases and the demand for them increases. D. When the supply of and demand for U.S. dollars increase.
Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a decrease in aggregate supply. The result will be a Select one: a. rise in real GDP but price level changes will be indeterminate. b. rise in real GDP and a fall in the price level. c. an indeterminate change in real GDP and a rise in the d. an indeterminate change in real GDP and a fall in the price level e. rise in...
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