In the long run, if the inflation rate is positive, a currency depreciates to maintain purchasing power parity
a. True
b. False
A
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If firms adopt a strategy that triggers a permanent punishment, the result in an indefinitely repeated game is
A) undefined. B) the noncooperative Nash equilibrium. C) the collusive Nash equilibrium. D) economically inefficient.
In the linear breakeven model, the difference between selling price per unit and variable cost per unit is referred to as:
a. variable margin per unit b. variable cost ratio c. contribution margin per unit d. target margin per unit e. none of the above
Which of the following changes would not shift the demand curve for a good or service?
a. a change in income b. a change in the price of the good or service c. a change in expectations about the future price of the good or service d. a change in the price of a related good or service
The tendency of those who are insured to take more risks as a result is a problem of: a. free riding
b. moral hazard. c. adverse selection. d. positive externalities.