If a country experiences deflation, its currency will increase in value relative to its trading partners, ceteris paribus
Indicate whether the statement is true or false
T
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A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A) The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. B) The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. D) The monopsonist will have to raise the wage rate for current and additional employees.
Firm's should raise the price of their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and c
Leakages cause diversion of income from the domestic spending stream
a. True b. False Indicate whether the statement is true or false
Cartels are thought to be inherently unstable because: a. the costs of enforcing cartel agreements are very low
b. each cartel member can privately profit from increasing production beyond agreed-upon levels. c. customers force cartel members to increase production and reduce prices. d. cartel agreements are legally binding and can be upheld in court.