Which of the following is an argument of opponents of devaluations?
A) Devaluations cause relatively slow adjustments.
B) Participants in foreign exchange markets have a short memory: if the expected devaluation doesn't occur within a short time-period, they will stop expecting it.
C) A devaluation causes a nation with fixed exchange rates to lose credibility in the medium run, driving its interest rate higher.
D) all of the above
E) none of the above
C
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After World War II, which of the following about the value of homes is not true?
A. On average they did not fall for 60 years. B. They were unaffected by recessions until the 2000s. C. They seemed immune to the business cycle. D. It remained relatively unaffected by inflation.
Suppose the supply of labor schedule decreases in a perfectly competitive labor market while the market demand schedule remains unchanged. A profit-maximizing representative firm will
A. substitute capital for labor. B. hire the same number of workers. C. hire more workers. D. hire less workers.
Find the dollar value of a per unit gasoline tax that would achieve the efficient solution, and calculate the resulting tax revenues generated to government.
As an economic consultant to the federal government, you recommend a market-based national policy response to global warming. In particular, you suggest using a pollution charge, which can be implemented as a gasoline tax. Based on your estimates, the marginal benefits and costs per gallon of gasoline are modeled as follows: MPB = 10 ? 0.7Q MEB = ? 0.05Q MSC = MPC = 1 + 0.15Q, where Q is in millions of gallons.
The labor-force participation rate is computed as
a. (Employed Adult Population) 100. b. (Employed Labor Force) 100. c. (Labor Force Adult Population) 100. d. (Adult Population Labor Force) 100.