The exchange rate
a. is the ratio of two countries' GDPs.
b. is the rate at which one country's money is flowing into another country.
c. states the price of one currency in terms of another currency.
d. is closely related to the concept of absolute advantage.
c
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The reservation value of a seller reflects her ________
A) willingness to pay for using a resource B) marginal cost C) marginal revenue D) total cost
During a banking crisis during the period of free banking, the unexpected surge in the demand for money in the form of specie would cause bankers to call in loans which would, in turn, squeeze credit, slow output and increase unemployment
Indicate whether the statement is true or false
An anti-inflation policy that involves announcing and executing tough measures to stop inflation is called _____
a. cold turkey b. red tape c. a pork-barrel policy d. chokehold e. time-inconsistency
The natural rate of unemployment
a. is due to cyclical business conditions. b. results from normal dynamic changes given the institutional arrangements of the economy. c. results from both frictional and cyclical economic conditions. d. is present when the economy is at the peak of an economic boom.