Suppose we import only one good from Germany: cars. Initially, the exchange rate is $0.60 per euro. We import 150,000 cars annually, priced at 70,000 euros each. Then the euro rises to $0.625. Assuming the dollar value of our exports to Germany remains constant, we will stop moving down the J-curve and "turn the corner" to move upward along it once we import ______________ German cars per year
A) fewer than 150,000
B) fewer than 144,000
C) fewer than 93,750
D) more than 150,000
E) more than 156,250
B
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Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 3 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive and greater than $10,000. B. negative. C. zero. D. positive but less than $10,000.
What is the equilibrium payoff for the stores?
a. Megastore $95 and Superstore $80 b. Megastore $305 and Superstore $55 c. Megastore $65 and Superstore $285 d. Megastore $165 and Superstore $115
From 2007 to 2008, the Federal Reserve System reduced interest rates, the price that borrowers pay. As a result, economists expected that the supply of money would
a. increase. b. decrease. c. not change. d. Uncertain-economic theory has no answer to this question.
The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a larger deadweight loss than will the same tax on donuts, other things equal
a. True b. False Indicate whether the statement is true or false