If a euro costs $1.25 today, and it costs $1.50 tomorrow, what has happened to the dollar-euro exchange rate?
a. Both the dollar and euro have depreciated.
b. The dollar has appreciated and the euro has depreciated.
c. The dollar has depreciated and the euro has appreciated.
d. Both the dollar and euro have appreciated
Ans: c. The dollar has depreciated and the euro has appreciated.
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Distorting taxes can invalidate Ricardian equivalence because
A) they confuse consumers about the need for government to repay its debt. B) alternative ways of collecting the same tax revenue produce different amounts of lost welfare. C) they are inferior to lump-sum taxes. D) they are more popular, politically, than lump-sum taxes.
A newly issued bond with a face value of $12,000 and no coupon payments is priced at $9,000 . The bond will mature in one year. What is the yield on this bond?
a. 33.3 percent b. 25 percent c. $3,000 d. $1,909.09 e. It depends on the interest rate
By the 1930s, when new technology advanced and craft distinctions blurred, the
a. AFL went out of business b. AFL welcomed nonskilled workers c. AFL restructured d. CIO was formed e. CIO was disbanded
The minimum-cost output is the quantity corresponding to the minimum point of the:
a. marginal cost curve. b. marginal product curve. c. average variable cost curve. d. average total cost curve.