Sally’s Sweaters operates in a perfect competition market. This means Sally faces which of the following?
a. Many competitors and is a price taker
b. Many competitors and is a price setter
c. Few competitors and is a price taker
d. Few competitors and is a price setter
a. Many competitors and is a price taker
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An increase in the quantity of money ________ aggregate demand and ________
A) increases; shifts the aggregate demand curve rightward B) increases; shifts the aggregate demand curve leftward C) decreases; shifts the aggregate demand curve leftward D) increases; rotates the aggregate demand curve so it is steeper E) decreases; shifts the aggregate demand curve rightward
If the interest rate on a U.S. one-year bond is 1%, the interest rate on a Mexican one-year bond is 5%, and investors expect the dollar to appreciate by 1% versus the peso, what is the currency premium for U.S. investors to hold Mexican pesos?
A) -3% B) 3% C) 4% D) 7%
The estimated demand for a good is
= 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. The coefficient on P
A. is negative as dictated by the law of demand. B. violates the law of demand. C. should not be greater than one (in absolute value). D. should have the same sign as the coefficient on PR. E. both c and d
How is accountability achieved for the Federal Reserve and is it clear?
What will be an ideal response?