Refer to Figure 4-4. What is the value of the deadweight loss at the equilibrium price of $15?
A) $0 B) $40 C) $60 D) $100
A
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Suppose the government's initial debt is $400 billion. If for the next three years the government runs deficits of $150, $125, and $200 billion, the government's additional debt at the end of the three years will be
A) -$50 billion. B) $50 billion. C) $475 billion. D) $900 billion.
Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11 Mexican pesos to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Mexico and ________ U.S
aggregate demand. A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease
Does it appear that currency boards make fixed exchange rates credible?
What will be an ideal response?
If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will be
A) less than one. B) less than zero. C) greater than one. D) equal to zero.