The impact of monetary policy on investment spending may be weakened ________.
A. because of the Treasury's desire for high interest rates
B. if the investment demand curve shifts to the right during inflation and to the left during recession
C. if the rate at which dollars are spent changes in the same direction as the money supply
D. if the investment demand curve is very flat
Answer: B
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If the government liberalizes immigration policies, the demand for labor will ________, the real wage will ________, and the quantity of labor hired will ________
A) remain the same; decrease; increase B) increase; decrease; remain the same C) remain the same; decrease; decrease D) remain the same; increase; decrease
For a given real exchange rate, a nominal appreciation of the domestic currency will result from
A) a decline in the terms of trade. B) an increase in the price of the foreign good. C) an increase in the price of the domestic good. D) an increase in the domestic rate of inflation.