eco121

QN=301 (18044) Other things the same, if the price level falls, people

a. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.

b. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.

c. decrease foreign bond purchases, so the supply of dollars in market for foreign-currency exchange increases.

d. decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.

QN=302 (18029) Suppose the economy is in long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then in the short run,

a. real GDP will rise and the price level might rise, fall, or stay the same. In the long-run, real GDP will rise and the price level might rise, fall, or stay the same.

b. the price level will fall, and real GDP might rise, fall, or stay the same. In the long-run, real GDP and the price level will be unaffected.

c. the price level will rise, and real GDP might rise, fall, or stay the same. In the long run, real GDP will rise and the price level will fall.

d. the price level will fall, and real GDP might rise, fall, or stay the same. In the long run, real GDP will rise and the price level will fall.

QN=303 (18024) Other things the same, when the price level rises, interest rates

a. rise, which means consumers will want to spend more on homebuilding.

b. rise, which means consumers will want to spend less on homebuilding.

c. fall, which means consumers will want to spend more on homebuilding.

d. fall, which means consumers will want to spend less on homebuilding.