If the value of the dollar falls relative to other currencies, the price of goods and services produced in the United States will appear:
A. more expensive to foreigners.
B. more expensive to U.S. citizens.
C. cheaper to foreigners.
D. the same to foreigners.
Answer: C
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If capital demand shifts to shorter lived equipment, then
A) net investment will fall. B) net investment will increase. C) net investment will not change. D) the effect on net investment is unknown.
The main determinant of the discount rate on a privately issued bank note was:
a. how long the issuing bank had been in operation. b. who was on the issuing bank's board of directors. c. the general reputation of the issuing bank. d. the distance of the issuing bank from the location where the note was being used.
If the price effect outweighs the income effect of a wage increase, the labor-supply curve will:
A. slope downward. B. slope upward. C. be perfectly horizontal. D. be perfectly flat.
Ronald Coase's study, "The Nature of the Firm," argued that firms are formed to take advantage of situations in which hierarchies are more efficient than markets
a. True b. False