Generally speaking, a country whose currency appreciates will experience, as a result,
A. Reduced aggregate demand as a result of a decrease in exports.
B. Increased exports.
C. Inflationary pressure from higher import prices.
D. Increasing interest rates from capital inflow.
Answer: A
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The elasticity of any demand curve is the same as its slope.
Answer the following statement true (T) or false (F)
If a firm cannot earn profits in the short run, it will shut down
Indicate whether the statement is true or false
For a resource to be able to generate sustained competitive advantage over rivals, it must be
a. Valuable b. Rare c. Difficult to imitate or substitute away from d. All of the above
All of the following are likely to be effective at eliminating a recessionary gap except one. Which is the exception?
a. Reducing Social Security payments to beneficiaries b. Reducing personal income taxes c. Increasing government expenditures on the interstate highway network d. Increasing farm subsidies e. Reducing corporate income taxes