Yesterday the exchange rate was €1 = $1.30, and today it is €1 = $1.35. In this case the dollar has appreciated.
Answer the following statement true (T) or false (F)
False
The dollar has depreciated because today it can be converted into fewer euros; in other words, it takes more dollars to get the same amount of euros.
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The Coinage Act of 1792 set the relative values of silver and gold coins at 15 to 1 . Suppose the relative values of silver and gold in the market was 14 to 1 . In this case,
a. only silver would circulate as money. b. silver would be hoarded and sold abroad. c. silver would be overvalued at the mint. d. both gold and silver would circulate as money.
In the short run, the monopolistic competitive firm will charge a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false
Which of the following would most likely cause both a decrease in the price of plasma screen TVs and a decrease in the number sold?
a. an increase in the supply of plasma screen TVs b. an increase in the demand for plasma screen TVs c. a decrease in the supply of plasma screen TVs d. a decrease in the demand for plasma screen TVs
Related to the Economics in Practice on p. 525: If the estate in the Chekhov play Uncle Vanya is earning 2 percent and a less risky investment is also earning 2 percent, the price of the estate would ________ to make the two investments financially equivalent.
A. have to rise B. have to not change, since the return on investment is the same C. have to fall D. none of the above