In the open-economy macroeconomic model, other things the same, when a U.S. resident imports a foreign good, the demand for dollars in the foreign-currency exchange market decreases
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose you withdraw $1,000 in cash from your checking account. Draw a T-account to show the effect of this transaction on your bank's balance sheet
What will be an ideal response?
What are the two largest categories in state government spending?
A. public welfare and highways B. education and highways C. education and public welfare D. public welfare and health & hospitals
Under deferred compensation packages,
A) a moral hazard occurs if a firms fires a good worker before the worker receives her deferred compensation. B) a moral hazard occurs if workers decide not to shirk so as to receive the deferred compensation. C) moral hazards are avoided. D) workers' wages are below their marginal revenue product as they near retirement.
If Bob has one piece of gum in his mouth, he gains a utility of 12. If he adds a second piece to the first, it yields a marginal utility of 6; adding a third will bring marginal utility of 1. Adding a fourth piece will make Bob choke, yielding a marginal utility of -4. We can say:
A. Bob's total utility from chewing four pieces of gum would be 23. B. Bob's total utility will decrease if he chews the fourth piece of gum. C. Bob's total utility decreases after the first piece of gum. D. Bob's total utility will be maximized if he eats two pieces.