If an undervalued currency is allowed to float:
A) its value will depreciate.
B) its quantity supplied in exchange for the other currency will decrease.
C) its quantity demanded in exchange for the other currency will increase.
D) its value will appreciate.
D
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Refer to Table 18-6. Sasha is a single taxpayer with an income of $60,000. What is his marginal tax rate and what is his average tax rate?
A) marginal tax rate = 17%; average tax rate = 21% B) marginal tax rate = 23%; average tax rate = 38% C) marginal tax rate = 38%; average tax rate = 23% D) marginal tax rate = 38%; average tax rate = 24%
Assume the graph shown represents the market for pizzas sold in an hour. Which of the following could be a reason S2 to S1?
A. The price of pizza sauce has increased.
B. The price of pizza went down.
C. The price of labor for pizza shops went down.
D. People just don’t have preferences for pizza anymore.
Which of the following is not implied by the quantity equation?
a. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in nominal output. b. If velocity is stable and money is neutral, an increase in the money supply creates a proportional increase in the price level. c. With constant money supply and output, an increase in velocity creates an increase in the price level. d. With constant money supply and velocity, an increase in output creates a proportional increase in the price level.
In a perfectly competitive market, what would you expect to happen to the number of firms and firm profitability in the short run and long run if demand for the product rises?
What will be an ideal response?