When demand is unit elastic, an increase in price will result in an increase in total revenue.
Answer the following statement true (T) or false (F)
False
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In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is
A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.
Refer to Table 18-2. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Mexican peso and U.S. dollars per British pound respectively?
A) 0.10 dollars per peso and 5.00 dollars per pound B) 0.01 dollars per peso and 0.50 dollars per pound C) 0.01 dollars per peso and 0.20 dollars per pound D) 0.10 dollars per peso and 2.00 dollars per pound E) 1.00 dollars per peso and 20.00 dollars per pound
A Pigovian tax is intended to:
A. counter the effect of a negative externality. B. decrease total surplus in a market. C. decrease efficiency in a market. D. All of these statements are true.
If the current account is in deficit, we know that
A) the merchandise trade balance is also in deficit. B) the merchandise trade balance is in surplus. C) the financial account is in surplus. D) there is a statistical discrepancy in the surplus.