Generally speaking, exchange rates are determined by

A) supply and demand.
B) the International Monetary Fund.
C) interest rates.
D) differences in money growth rates.


A

Economics

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Refer to Figure 13-1. Ceteris paribus, an increase in government spending would be represented by a movement from

A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.

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Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?

What will be an ideal response?

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Unregulated natural monopolies:

A. never capture lowest costs per unit possible. B. can capture profits by restricting output. C. create no problems for policy-makers. D. are always protected by government policy.

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Describe the two extreme views on illegal immigration and their employment effects. Why are these two views misleading?

What will be an ideal response?

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