An exchange rate is the price of one country's currency in terms of another country's currency
Indicate whether the statement is true or false
TRUE
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If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita
is growing at a rate of 1.3%, which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia. A) Real GDP per capita in the United States will always be 1.9% higher than real GDP per capita in Bolivia. B) The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will increase over time. C) The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will always be $1.9 trillion. D) The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will shrink over time.
Under the Clinton administration, attempts were made to relax the antitrust enforcement efforts of the Reagan administration
a. True b. False Indicate whether the statement is true or false
The adaptive expectations theory suggests that:
a. the price level that people expect in the future is based on the behavior of prices in the past. b. the unemployment rate adapts immediately to the inflation rate. c. people have perfect foresight and always predict future price levels correctly. d. people use all current information available to formulate their inflation expectations. e. people react spontaneously to price level changes and do not consider any past or present information.
Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of producing a computer in the United States is equal to ________, and the opportunity cost of producing a computer in China is ________.
A. 2.67 computers; 0.33 bicycles B. 0.375 bicycle; 3 computers C. 4 bicycles; 0.5 bicycles D. 0.25 bicycle; 2 bicycles