Increases in the overall price level:
A. result in an increase people's dollar-denominated wealth.
B. mean that a given number of dollars can buy as much in terms of real goods and services as before.
C. tends to cause people to increase their consumption.
D. reduce people's real wealth.
D. reduce people's real wealth.
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When nations trade based upon comparative advantage, only one side of the transaction will benefit.
Answer the following statement true (T) or false (F)
Which of the following is an example of a Giffen good?
a. fish in Japan b. rice in the Chinese province of Hunan c. pork in India d. Both a and b are correct.
In the 1950s
A. more women were unemployed than underemployed. B. more women were underemployed than unemployed. C. about the same number of women were unemployed as underemployed.
Suppose the U.S. removes an import quota on steel. U.S. exports
a. increase, the real exchange rate of the U.S. dollar appreciates, and U.S. net capital outflow increases. b. increase, the real exchange rate of the U.S. dollar depreciates, and U.S. net capital outflow is unchanged. c. decrease, the real exchange rate of the U.S. dollar appreciates, and U.S. net capital outflow is unchanged. d. decrease, the real exchange rate of the U.S. dollar depreciates, and U.S. net capital outflow decreases.