In determining the exchange rate between the Canadian dollar and British pound, if Canadian income increases, then
a. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are allowed to float
b. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are fixed
c. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are allowed to float
d. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are fixed
e. the supply of pounds will shift to the left, causing appreciation of the Canadian dollar, assuming exchange rates are fixed
A
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A) demand; demand B) demand; supply C) supply; demand D) supply; supply
Each person in the population can be classified as employed, unemployed, or not in the labor force
a. True b. False Indicate whether the statement is true or false
Which of the following is the major difference between the chained consumer price index and the regular consumer price index?
a. The chained index assumes that households purchase the same bundle of goods over a lengthy time period; the regular price index makes allowance for shifts away from goods that have become more expensive. b. The chained index makes allowance each month for shifts away from goods that have become more expensive; the regular consumer price index fails to adjust for these shifts. c. The chained consumer price index reflects changes in the prices of all final goods and services produced during a period, whereas the regular consumer price index reflects only changes in the prices of goods purchased by households. d. The chained consumer price index will generally result in a higher measured rate of inflation than the regular consumer price index.
Which of the following statements best depicts laypeople's explanation of the Great Depression at that time?
A. Unions were keeping the good jobs for themselves. B. An oversupply of goods had glutted the market. C. Government policies kept prices too high. D. An oversupply of goods is impossible.