The figure below depicts the IS-LM-FE model with floating exchange rates.
At point B, the domestic currency
A. is under pressure to depreciate.
B. is at its highest possible value in the foreign exchange market.
C. is under pressure to appreciate.
D. can remain relatively stable.
Answer: C
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517John's benefit from his first hour cleaning windows is:
A. $7 B. $14 C. $18 D. $2.
Refer to the scenario above. If the opportunity cost of time increases to $80 per hour, which of the following statements is true?
A) Maria should choose to drive as it saves her $10. B) Maria should choose to drive as it saves her $150. C) Maria should choose to travel by train as it saves her $10. D) Maria should choose to travel by train as it saves her $150.
Why is the demand for labor a "derived demand?"
What will be an ideal response?
A profit center is
a. evaluated based on minimizing costs within the division b. evaluated based on maximizing costs within the division c. evaluated based on minimizing profits generated by the division d. evaluated based on maximizing profits generated by the division