Answer: the U.S. real interest rate and net exports will both rise.
Explanation: Due to the ongoing war abroad, there would be a reduction in production of goods and services in the affected countries and a rise in the production of goods and services in the safe haven country (US) leading to increased levels of export to meet the demand.
War affects investments negatively. As a result, investments are also moved to the US for safety. However, pressure on US producers and eventual shortage due to increased exports, would lead to inflation and increase in prices of goods and services. To mitigate these effects and to reduce the supply of money, government would increase interest rates.
This explains why both interest rates and export both rise.
Answer: Starbucks Coffee is a 'normal good', while Beanlightened coffee is an 'inferior good'.
Andrew's demand for Starbucks coffee changed as a result of an increase in his 'income'
Explanation:
A normal good is a good that sees it's demand rise as income or wages rise. Essentially if you're making more money, you buy more of such goods. Andrew is now making more money so he buys more of Starbucks coffee.
An inferior good on the other hand is one that sees it's demand drop as wages or income rises. You usually buy less of it the more money you make. Take no brand cornflakes for instance, as one makes more money they tend to buy less of it and more of branded cornflakes. Beanlightened coffee is therefore an inferior good.
Income is compensation you get for providing a service. In this instance Andrew receives $75000 a year for being a programmer.
Answer:
The following portion describes the description and as per the particular context.
Explanation:
- Sometimes when, however according to neoclassical economics, the economy would be in a monetary expansion void, the economy would rebound towards its maximum or projected production level.
- That's because the ecosystem or the market, throughout essence, is personality. Wage levels are not going to increase. To decrease the difference, joblessness could also increase and therefore not decline.
