All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro
A) will decrease in value relative the U.S. dollar.
B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged.
C) will increase in value relative to the U.S. dollar.
D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.
C
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I + (G – T) =
a. S + M b. S + X c. S + (M - X) d. S + (I - M)
Fiscal restraint will definitely occur if the government:
A. Reduces its spending and reduces tax rates. B. Reduces its spending and increases tax rates. C. Increases its spending and reduces tax rates. D. Increases its spending and increases tax rates.
How might an oligopolist increase total revenue without changing price?
A. Reduce costs. B. Reduce output. C. Through nonprice competition. D. Reduce marketing efforts.
Which of the following statements is true?
A) Japan is more dependent on foreign trade than is the United States. B) Imports and exports account for over one-half of the GDP of Belgium. C) France is the leading exporting country, accounting for 10 percent of total world exports. D) Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops.