An decrease in Italy's interest rate and an decrease in Italy's price level relative to U.S. price level have the same effect on the exchange rate between the two countries.
Answer the following statement true (T) or false (F)
False
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The logical principle for maximization can be stated as follows:
A) Do it if it feels good. B) Do it if the benefit from doing it is greater than the cost of doing it. C) Do it unless it's illegal, immoral, or fattening. D) Do it whenever the marginal benefit equals the marginal cost.
A lower domestic price level raises aggregate expenditures and, therefore, shifts the aggregate demand curve to the right
a. True b. False Indicate whether the statement is true or false
Careetha has just taken a fixed-rate loan and agreed to pay a nominal interest rate of 6 percent. If the inflation rate during the first year of the loan was 2 percent, her real interest rate that first year was
a. 6 percent b. 8 percent c. 4 percent d. 12 percent e. impossible to calculate without additional information
What is significant about a point on a graph at which an indifference curve is tangent to a budget constraint?