Economics.

If the exchange rate is 125 yen = $1, a bottle of rice wine costs 2500 yen costs...

$20

Assume MPC is .75. The multiplier is...

4.00

Nominal exchange rate is about 2 florin per dollar. If a basket of goods in the US costs $40, how many florins does a basket cost?

80 florins

A decrease in government in spending initially and primarily shifts...

AD to the left.

The long run aggregate supply curve shifts right if...

All of the above.

Which of the following events would shift the money demand to the right?

An increase in price level, but not an increase in the interest rate.

If Congress cuts spending to balance the budget, the Fed can act to prevent unemployment and recession by...

Buying bonds to increase money supply.

Aggregate demand shifts left when the government...

Cuts military expenses, or when G goes down.

If a country changes its corporate tax laws so that foreign business build and manage more business in that country, then the net capital outflow of that country...

Falls and the net capital outflow of the other countries rise.

Fiscal policy refers to the idea that AD is affected by changes in...

Government spending and taxes.

What actions could be taken to stabilize output in response to a large decrease in the US net exports?

Increase government spending or money supply.

When the interest rate rises, the opportunity cost of holding money...

Increases, quantity of money demanded decreases.

Which part of real GDP fluctuates the most over the course of the business cycle?

Investment

Which of the following is correct concerning the long run Phillips curve?

It's position depends on the natural rate of unemployment.

The Government buys new weapon systems. The manufacturers of their weapons pay their employees. The employees spend this money on goods and services. This illustrates...

Multiplier effect.

What is always correct?

NX=NCO

If Germany purchased more abroad than it sold, then it had...

Negative net exports or trade deficit.

Which is NOT a determinant of the long-run level of GDP?

Price level

The variables on the vertical and horizontal axes of the AD and AS graph are...

Price level and real output

The aggregate quantity of goods and services demanded changes as the price level falls because...

Real wealth rises, interest falls, and the dollar depreciates.

An adverse supply shock causes inflation to...

Rise and the short run Phillips curve to shift right.

A Swiss watchmaker opens a factory in the US. This in an example of...

Swiss foreign investment

According to liquidity preference theory, the money-supply curve would shift right if...

The Federal Reserve chose to increase money supply.

If the exchange rate changes from 135 KZ per dollar to 150 KZ per dollar...

The dollar has appreciated, it now takes fewer dollars to to buys KZ goods.

A shift of the money demand curve down is consistent with...

The government reduces spending, resulting in a decrease in people's incomes.

If purchasing power parity holds, the price level in the US is 120, and the price level in Canada is 140...

The nominal exchange rate is 140/120.

What does the purchasing power parity imply?

The purchasing power of the dollar is the same in the US as in other countries.

AS curve is upward sloping in...

The short run only

According to the Phillips curve, unemployment an inflation are inversely related in...

The short run only

An open economy's GDP is given by...

Y=C+I+G+NX

If the economy starts at C, an increase in the money supply moves the economy...

to A in the long run, vertical line.