In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it.
B) It decreases it.
C) It has no impact.
D) It depends.
A
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Answer the next question(s) based on the following information for Manfred's Shoe Shine Parlor.Units of LaborTotal ProductMarginal ProductTotal Revenue00 11414$422 10 330 90435 539 1176 1267442132Assume Manfred hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. At what price does each shoe shine sell?
A. $1 B. $3 C. $2.50 D. $2
From a Keynesian perspective, the way out of recession is to
A. Get consumers to spend more on goods and services. B. Get consumers to spend less on goods and services. C. Use monetary restraint. D. Wait for the economy to fix itself.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The ________ amount of cars is 35.
A. break-even B. subsidized C. unregulated D. efficient
Refer to the table below. Calculating the annual inflation rates would indicate that this economy is experiencing:
A. Stagflation
B. Deflation
C. Disinflation
D. Constant inflation