For this question, assume that there is a simultaneous tax increase and monetary expansion. In a flexible exchange rate regime, we know with certainty that
A) the exchange rate and output would both increase.
B) the exchange rate would increase and output would decrease.
C) the exchange rate would decrease.
D) the exchange rate would decrease and output would increase.
E) none of the above
C
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Holding your income and the price of lobster constant, you can derive your demand curve for steak from an indifference curve/budget line diagram by determining how your consumption of steak changes when the price of a steak changes
Indicate whether the statement is true or false
If Molly Bee increases her work hours when her wage increases, then
A) the substitution effect of the wage increase outweighs the income effect. B) the income effect of the wage increase outweighs the substitution effect. C) leisure is an inferior good to Molly. D) Molly is spending beyond her means.
After the Civil War, the National Banking Acts gave the federal government the power to do all of the following except _____.
(A) Require banks to hold adequate gold and silver. (B) Charter banks. (C) Insure banks against failure. (D) Have a single national currency.
Use the following information to answer the next question.Maya purchases only three products; orange juice, prepared meals, and on-demand episodes of her favorite shows. Each week she purchases 2 bottles of orange juice, 14 prepared meals, and 8 on-demand episodes. The prices of bottles of orange juice, prepared meals, and on-demand episodes for four different years are shown in the table below.YearPrice of Orange JuicePrice of Prepared MealsPrice of On-Demand Episodes1$2$6$102$6$5$123$4$7$134$4$8$11Based on this information, which of the following statements is true?
A. The cost of Maya's purchases increased in Year 2 and Year 3, but decreased in Year 4. B. Because the price of one of the goods has gone down each year, the cost of Maya's purchases has gone down each year. C. Inflation means that all prices have gone up, so there is no inflation in any year. D. There has been inflation in every year.