Everything else held constant, Americans who love French wine benefit most from
A) a decrease in the dollar price of euros.
B) an increase in the dollar price of euros.
C) a constant dollar price for euros.
D) a ban on imports from Europe.
A
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The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. Based on this information, the Bubby Gum company should
A) fire Joanne because she creates a loss for the firm. B) increase its demand for labor. C) decrease Joanne's wage rate because she is paid too much. D) keep Joanne because she creates a profit for the firm. E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
If the government begins to run a larger budget deficits, then assuming there is no Ricardo-Barro effect, the demand for loanable funds ________ and the real interest rate ________
A) decreases; falls B) decreases; rises C) increases; rises D) increases; falls