A stronger U.S. dollar leads to ________ in SRAS and ________ in AD simultaneously.
A. a leftward shift; a rightward shift
B. a leftward shift; a leftward shift
C. a rightward shift; a leftward shift
D. a rightward shift; a rightward shift
Answer: C
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Employing the data from Figure 2-2, income Y is equal to
A) $3,000,000. B) $3,300,000. C) $3,600,000. D) $5,100,000.
A U.S.-based multinational has two subsidiaries, one in Lithuania where the tax rate is 15%, and one in Ireland where the tax rate is 2%. The tax rate in the U.S. is 35%
If the Lithuanian-based subsidiary is transferring a good to the Irish subsidiary and the goal is to avoid taxes, it will A) sell it to the U.S. parent at a transfer price equal to marginal cost, which will then sell it to the Irish subsidiary at monopoly level pricing. B) set the transfer price to the Irish subsidiary at the monopoly level. C) set the transfer price to the Irish subsidiary at marginal cost. D) Unable to determine with the information given.
In the United States, the earnings gap between workers with college degrees and workers with high school degrees
a. has never been documented by reliable evidence. b. is evident, but it has remained roughly constant over the past several years. c. is evident, but it has diminished over the last several years. d. is evident, and it has widened over the last several years.
Criticisms of the ECB center on its primary focus on ______ with less (but perhaps more needed) focus on _______.
A) unemployment and GDP growth; exchange rates B) exchange rates; inflation problems C) price stability; unemployment and GDP growth D) political cohesiveness; price stability