A freely floating exchange rate brings some risks to people who are actively engaged in foreign trade
a. True
b. False
Indicate whether the statement is true or false
True
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The successes of the 1960s were ascribed to the effects of
a. classical policies from the 1800s. b. classical policies from the 1930s. c. classical policies from the 1950s. d. Keynesian policies from the 1930s. e. Keynesian policies from the 1950s.
Suppose Sarah Lee Corporation stock has a P/E ratio of 8 . This P/E ratio is relatively
a. low, indicating that buyers may expect earnings to rise. b. low, indicating that buyers may expect earnings to fall. c. high, indicating that buyers may expect earnings to rise. d. high, indicating that buyers may expect earnings to fall.
The economy is initially in long-run equilibrium. Expectations are adaptive, prices and wages are flexible, and there is an unanticipated increase in aggregate demand. In the short run, the price level will be __________ than it was in long-run equilibrium and Real GDP will be __________ than it was in long-run equilibrium
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
The economy experiences an increase in the price level and an increase in real domestic output. Which is a likely explanation?
A. Interest rates have increased B. Business taxes have increased C. Wage rates have fallen D. Net exports have increased