An exception to the law of one price occurs if
A) the good is not tradeable.
B) demand for the good is stronger in some countries than in others.
C) exchange rates are flexible, rather than fixed.
D) interest rates differ across countries.
A
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Union shops never face competition from substitute labor.
Answer the following statement true (T) or false (F)
The aggregate demand is described graphically as a. sloping downward. b. a vertical line
c. a horizontal line. d. sloping upward.
The Fed's countercyclical policy during expansion and prosperity includes:
A. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market. B. raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market. C. raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market. D. lowering the required reserve ratio, cutting the discount rate, and buying government bonds on the open market.
A unique characteristic of taxes on economic rents is that such taxes:
A. stimulate aggregate production. B. do not lead to a reallocation of the resource. C. are paid by consumers. D. are always regressive.