At an exchange rate of $1 = €1 in Figure 36.1, there is
A. Equilibrium in the foreign exchange market.
B. A shortage of euros.
C. a shortage of dollars.
D. A surplus of dollars.
Answer: C
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Which of the following events could result in the consumption function shifting from CF0 to CF2?
A) an increase in disposable income B) an increase in expected future income C) a decrease in wealth D) a decrease in the real interest rate E) a decrease in disposable income The figure above shows two aggregate expenditure lines.
A company will shut down in the short run if it cannot cover its __________ and will exit the industry in the long run if it cannot cover its __________
Fill in the blank(s) with correct word
Explain why rational expectations theorists do not support government intervention to alleviate unemployment. Explain their views on the effectiveness of fiscal policy and monetary policy
The functions of money are to serve as a:
A. determinant of consumption, investment, and government spending. B. resource allocator, method for accounting, and means of income distribution. C. unit of account, store of value, and medium of exchange. D. factor of production, exchange, and aggregate supply.