If one day the dollar is trading at 1.00 euro per dollar and the next day the exchange rate is 0.88 euros per dollar, one possible factor that might have led to this change is
A) an increase in the U.S. interest rate.
B) a decrease in the European interest rate.
C) the Fed buying dollars.
D) the Fed selling dollars.
E) an increase in the expected future exchange rate.
D
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Roxanne and Eileen live in an apartment building with a laundry room in the basement. Roxanne does her laundry at home, spending $4 and 5 hours per week. Eileen sends her laundry out, spending $20 and 15 minutes per week transporting the laundry. On the basis of the information given, which one of the following must be true?
a. Roxanne earns more labor income than Eileen. b. Eileen earns more total income than Roxanne. c. Roxanne enjoys doing laundry; Eileen does not. d. Eileen has less laundry than Roxanne. e. Eileen and Roxanne attach different utilities to time spent doing laundry.
A budget deficit is often accompanied by a(n) __________ deficit.
a. trade b. education c. corporate d. international
Refer to the accompanying figure.
Based on the figure, when PAE = 400 + 0.5Y, short-run equilibrium output equals:
A. 800. B. 400. C. 1,200. D. 600.
The top 5 percent of health care users in the United States account for
A. almost 90 percent of all health costs. B. over 50 percent of all health costs. C. over 75 percent of all health costs. D. 10 percent of all health costs.