For a given nominal exchange rate and foreign price level, an increase in the domestic price level ________ the real exchange rate.
A. offsets any change in
B. increases
C. may either increase or decrease
D. decreases
Answer: B
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As more people start using an operating system, more applications are developed for it. This makes the system more valuable to individual users. This is an example of a ________
A) pecuniary externality B) network externality C) positive externality D) negative externality
Use the information in the table above to calculate the value of government saving
A) $15 million B) -$5 million C) $5 million D) $45 million
A trigger strategy is one in which a player
A) cooperates in the current period if the other player cooperated in the previous period, but cheats in the current period only if the other player cheated in the previous period. B) cheats in the current period if the other player cooperated in the previous period, but cooperates in the current period if the other player cheated in the previous period. C) cooperates in the current period if the other player has always cooperated, but cheats forever if the other player ever cheats. D) cheats in the current period if the other player has always cheated, but cooperates forever if the other player has ever cooperated.
Refer to Figure 15-3. Suppose the monopolist represented in the diagram above produces positive output. What is the price charged at the profit-maximizing/loss-minimizing output level?
A) $38 B) $54 C) $68 D) $75