Purchasing power parity does not hold in the short to medium run because
A) exports don't equal imports.
B) exchange rates fluctuate too much.
C) most business cycles are caused by shocks to aggregate demand.
D) countries produce different goods.
D
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Isocost curves represent
A) least cost combinations of inputs. B) combinations of inputs that can be purchased given their prices for the same total cost. C) a producers cost function. D) None of the above
The theory of bounded rationality states that it is likely for consumers to have perfect information
a. True b. False Indicate whether the statement is true or false
Assume that the reserve requirement is 25 percent and that the amount of checkable deposits in Federal Bank is $200 . If the bank has loaned out $120, then the bank's excess reserves must equal:
a. $0. b. $25. c. $30. d. $80. e. $225.
Assume no price ceiling exists in a market. Then a price ceiling is established below the market equilibrium. What would result?
a. Surplus b. The exchange price c. Shortage d. Equilibrium