The derived demand for an input decreases when
A. the price of the input increases.
B. the price of the output increases.
C. the price of the input decreases.
D. the price of the output decreases.
Answer: B
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Nominal exchange rates differ from real exchange rates in that nominal exchange rates
A) do not correct for differing interest rates across countries. B) do not measure the purchasing power of the currency. C) are fixed, while real exchange rates are flexible. D) are flexible, while real exchange rates are fixed.
By far the largest EU exporter and importer is
a. France b. The Netherlands c. Germany d. The United Kingdom
How does a market demand curve differ from an individual demand curve?
a. It forms a triangle. b. It is inverted. c. It has steps. d. It is smoother.
When bankers hold excess reserves:
A. The size of the monetary multiplier increases B. The money-creating potential of the banking system increases C. The money-creating potential of the banking system decreases D. There is no change in the money-creating potential of the banking system