When the ratio of domestic prices to foreign prices falls:
A) the real exchange rate depreciates only when the nominal exchange rate depreciates.
B) the real exchange rate depreciates even when the nominal exchange rate is constant.
C) the real exchange rate appreciates.
D) the real exchange rate depreciates only when the nominal exchange rate appreciates.
B
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Self interest
A) reflects choices that are best for the individual who makes them. B) reflects choices that are best for society as a whole. C) occurs only when wants exceed available resources. D) cannot be used to determine how goods are produced. E) has nothing to do with determining what goods are produced.
Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?
A) an increase in the demand for goats B) an increase in the price of ostrich feed C) a decrease in the price of goats D) an increase in the price of ostriches
An increase in the domestic interest rate relative to other interest rates should
A) increase net exports. B) increase investment spending. C) decrease consumption spending. D) increase government spending.
Countries that abandoned the gold standard early in the Great Depression suffered an average decline in production of 3 percent between 1929 and 1934
Countries that stayed on the gold standard until 1933 or later suffered an average decline in production of A) 12 percent. B) 18 percent. C) 24 percent. D) > 30 percent.