In the HO model, reciprocal demand leads to an equilibrium price by inducing changes in both demand and supply
Indicate whether the statement is true or false
TRUE
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Refer to Figure 8.1. The ideal outcome for the players would be for Charla to play ________ and for Mirna to play ________
A) Install; Install B) Install; Don't Install C) Don't Install; Install D) Don't Install; Don't Install
Which of the following would cause the current account to decrease?
A) an increase in the nominal exchange rate, E B) an appreciation of the home currency C) an increase in disposable income D) an increase in foreign prices, P E) a decrease in domestic prices, P
Rational expectations involve the assumption that
A) market participants make use only of information on the past performance of an asset in determining what they believe its price should be. B) market participants rarely change their minds about the correct price of an asset. C) financial markets are good at increasing liquidity, but poor at transmitting information. D) market participants makes use of all available information.
The wage premium in the United States for college graduates over high school graduates has remained constant from 1978 to 2000
a. True b. False Indicate whether the statement is true or false