A decrease in the price level will _____
Fill in the blank(s) with the appropriate word(s).
shift the consumption function upward.
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Economists have not found a way to predict when recessions will begin and end
Indicate whether the statement is true or false
The main reason(s) why governments sometimes chose to devalue their currencies is (are)
A) devaluation makes domestic goods more expensive in relation to foreign goods. B) devaluation makes domestic services more expensive in relation to foreign services. C) devaluation increases foreign reserves held by the central bank. D) devaluation improves the current account and increases foreign reserves held by the central bank. E) devaluation hurts foreign currencies.
Internal markets cannot suffer market failure like an external market
Indicate whether the statement is true or false
Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than spending an equal amount of money to go to a movie. Her opportunity cost of going to the beach is:
A. the $12 she spent on the umbrella, food and drinks. B. the value she places on seeing the movie. C. only $0 because she would have spent $12 to go to the movie. D. the value she places on seeing the movie plus the $12 she spent on the umbrella, food and drinks.