Other things constant, a lowering of interest rates on used car loans would tend to
A) reduce the demand for used car loans.
B) increase the demand for used car loans.
C) increase the supply of used car loans.
D) reduce the supply of used car loans.
E) do none of the above.
E
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If the domestic prices for traded goods rises 5% in Japan and rises 7% the US over the same period, what would happened to the Yen/US dollar exchange rate? HINT: S1/S0 = (1+?h) / (1+ ?f) where S0 is the direct quote of the yen at time 0, the current period
a. The direct quote of the yen ($/¥) rises, and the value of the dollar falls. b. The direct quote of the yen ($/¥) falls, and the value of the dollar rises. c. The direct quote of the yen would remain the same. d. Purchasing power parity does not apply to inflation rates. e. Both a and d.
Why is it important to use real rather than nominal GDP figures when making comparisons of output across time periods
What will be an ideal response?