A rise in the domestic interest rate leads to capital
A. outflows and exchange rate appreciation.
B. outflows and exchange rate depreciation.
C. inflows and exchange rate depreciation.
D. inflows and exchange rate appreciation.
Answer: D
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Refer to the figure below. What is the price elasticity of demand when the price of rice is $6 per pound? 
A. 0.5 B. 3 C. 2 D. 0.67
Consider the ordinary and compensated demand curves for a normal good. If the price of the good falls, then
a. the ordinary demand curve will show the larger increase in quantity demanded. b. the compensated demand curve will show the larger increase in quantity demanded. c. the increase in quantity demanded will be the same for the ordinary and compensated demand curves. d. we cannot predict whether ordinary or compensated demand will show the larger response in quantity demanded.
Using the data in the table above, if the price of a stapler is $5, then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied
A) a surplus; is greater than B) a surplus; is less than C) a shortage; is greater than D) a shortage; is less than E) neither a surplus nor a shortage; equals
An important determinant of the price elasticity of supply is
A) whether the good is a durable or a nondurable. B) the time period firms have to adjust to a new price. C) how well consumers like the commodity. D) the proportion of the consumer's total budget spent on the good.