Advocates of a fixed exchange rate system argue that fixed exchange rates promote international trade
Indicate whether the statement is true or false
True
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If Best Lights and Bright Lights are competing in a duopoly and it is always best for Best Lights to charge a price of $4 regardless of the price Bright Lights charges, then charging $4 is ________ for Best Lights.
A) a pure, but not dominant strategy B) a dominant, but not pure strategy C) a dominant and pure strategy D) neither a dominant nor pure strategy
If apples and pears have equivalent opportunity costs,
a. it makes no difference what the economy produces, pears or apples b. the economy always gains from producing more and trading the other c. the production possibilities curve is bowed out d. one apple trades for two pears e. one apple trades for one pear
If the money interest rate is 7 percent and the inflationary premium 4 percent, the real interest rate is
a. -3 percent. b. 3 percent. c. 4 percent. d. 7 percent.
The figure above shows the demand and cost curves facing a price-setting firm. The maximum profit the firm can earn is ________.
A. $7,500 B. $8,000 C. -$1,500 D. $7,650 E. -$4,500