Holding all else constant, a decrease in U.S. real GDP will ________ the supply for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease
B. decrease; decrease
C. decrease; increase
D. increase; increase
Answer: C
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The value of consumption at each level of disposable personal income, all other determinants of consumption unchanged, is shown by the:
a. aggregate dissaving curve. b. consumption function. c. investment schedule. d. savings function.
The Fed never processes immigrating checks that must pass between different Federal Reserve banks
Indicate whether the statement is true or false
One of the problems created by price floors is that
a. consumers complain about high prices b. firms have no incentives to reduce cost c. excess supply is created d. people must learn to cope with excess demand e. technological change is significantly impacted
The two conflicting tendencies that a firm has in an oligopolistic industry are the incentive to
a. cheat to maximize joint profits and the incentive to raise prices. b. cheat and avoid collusion and the incentive to raise price to maximize the firm's share of profits. c. increase output in order to minimize per-unit costs and the incentive to reduce price in order to maximize joint profit. d. cooperate to maximize joint profits and the incentive to cheat on the agreement in order to increase the firm's share of the profit.