For main industrial countries such as Japan and the U.S
A) there is much less month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run.
B) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the short run.
C) there is almost the same month-to-month variability of the exchange rate and price levels.
D) it is hard to tell whether month-to-month variability of the exchange rate is similar to changes in price levels.
E) there is much more month-to-month variability of the exchange rate, suggesting that price levels are relatively sticky in the long run.
B
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Refer to Figure 4-5. With rent control, the quantity supplied is Q1. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get?
A) R1 B) R0 C) more than R1 D) R*
A firm practicing direct price discrimination will charge a higher price to
a. Consumers known to have an elastic demand b. All consumers c. Consumers known to have an inelastic demand d. Consumers known to have a unitary elastic demand
An oral auction
a. is also called a Vickrey auction b. is conducted by bidders submitting a single sealed bid c. is where the sole remaining bidder wins and pays his winning bid d. all of the above
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.According to the figure, if The Rock Shop enters the market, MiiTunes should:
A. leave the market. B. give an ultimatum to The Rock Shop. C. charge a high price. D. charge a low price.