<p>A and B both sound good to me? A increases AD and B increases AS.</p>
<p>Yeah I agree but Economic growth is generally in the long run, so I would have to pick B investment tax credits?</p>
<p>yes i am actually. and i have much to trade.</p>
<p>It’s B. When it asks for long run growth, always look for investment spending/shifts in AS.</p>
<p>Here’s a question for Macro!</p>
<p>Due to an international financial crisis, Canada experiences a significant inflow of funds from other countries.
Explain the effect that this inflow of funds will have on the following.
(a) The international value of the Canadian dollar.
(b) Canadian net exports
(c) The real interest rate in Canada
(d) The level of investment in Canada</p>
<p>It didn’t specify long-run or short-run. That’s why I was confused.</p>
<p>@ccessu
59. if investment spending is not sensitive to interest rates, I will not increase. Remember, if the money supply expands, interest rates go down, and investment spending SHOULD go up. but since its not sensitive it wouldn’t. C+I+G+Xn, if I doesn’t go up, C cannot be the answer.</p>
<p>I’m not exactly sure what D means, but its pretty easy to rule out A,B,C and E so D should be the answer.</p>
<p>@math: It appreciates right? Since demand for the currency increases?</p>
<p>also, @jersey: how many ap tests are you taking?!</p>
<p>All the answers are dependent on A, and A is the one I’m not sure about.</p>
<p>a) Appreciate due to increased demand for currency
b) Net exports would fall as Canadian goods are now relatively more expensive for consumers who are purchasing from other countries (due to high cost of Canadian currency)
c) Unsure
d) Investment in Canada would fall because it is more expensive to invest (relatively) for consumers, although this answer is probably dependent on the previous question.</p>
<p>i need help with this (can someone show steps/or explain)
Given:
-Consumer income:$52
-Price of J:8
-Price of K:4</p>
<p>The consumer will maximize her utility by purchasing
A. 3 units of J and 6 units of K
B. 6 units of J and 3 units of K
C. 4 units of J and 5 units of K
D. 5 units of J and 5 units of K
E. 2 units of J and 7 units of K</p>
<p>Interest rates would increase I’m fairly sure as RGDP falls, thus it acts like somewhat of a contractionary policy. Not positive though.</p>
<p>Radiums, I think it is B.</p>
<p>its kind of logical… they dont give you the amounts of marginal utility, so you assume that J makes you “happier” thus you consume all the J you can until it works against your favor that you should start consuming some K.</p>
<p>Its C.
How could it be B? You cant spend more than you have in income. C is the only one where you can completely use up your income in expenditures.</p>
<p>yeah, its C</p>
<p>ohhh… lol… my bad…i overlooked that…</p>
<p>this must have been an easy (one of the first 10) question. i didnt bother looking at that since i had assumed this was one of those tough one that you had to use constructive thought.</p>
<p>I haven’t even started studying for micro…ill probably get a 3 but am praying for a 4</p>
<p>lol… all i need is a 3 on both exams to get credit</p>
<p>but for some reason i feel like i am obliged to get a 5 on both since my teacher told me that out of all her students, she thinks i would perform the best… lmao… and im the guy who makes stupid, random outburts during powerpoint notes</p>
<p>your just thatguyinclass…</p>
<p>What would be a good score to aim for on the MC if you’re looking for a 5?
50/60?</p>
<p>lol… try 78%… im not joking</p>