In this graph of choice set, price change causes the slope of budget lines to change
Indicate whether this statement is true or false
Answer: True.
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Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000
Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $11,000 B) $17,000 C) $23,000 D) $29,000
An exchange rate is the number of units that buys one unit of another currency.
a. true b. false
Refer to the graph shown. An exchange rate of $2.95 per dinar creates excess:
A. supply of dinar that will cause the dinar to lose value, unless dinar are bought by the government. B. supply of dinar that will cause the dinar to lose value, unless dinar are sold by the government. C. supply of dinar that will cause the dinar to gain value, unless dinar are bought by the government. D. demand for dinar that will cause the dinar to gain value, unless dinar are sold by the government.
In recent years, calls for monetary rules by the Federal Reserve have been replaced with calls for:
A. A reduction in coordination failures B. Using an equation of exchange C. Price-level surprises D. Inflation targeting