If a 10% currency appreciation results in a 10% decrease in the price of imported goods, then this is called
A) a complete pass-through.
B) the Marshall Lerner condition.
C) a partial pass-through.
D) import inflation.
A
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The U.S. government spent over $3.6 trillion in budget year 2010
a. True b. False Indicate whether the statement is true or false
Stock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market. What only about 30 percent of surveyed investors knew was that as bond prices rise, interest rates
a. fall in reaction to the increased demand for bonds. b. fall in reaction to the decreased demand for bonds. c. rise in reaction to the increased demand for bonds. d. rise in reaction to the decreased demand for bonds.
Why does the government sometimes give monopoly power to a company by issuing a patent?
(A) The government does not want competition for the product. (B) The company pays the government for the patent. (C) The company can then profit from their research without competition. (D) The company makes a product better than anyone else's.
Entrepreneurial profits are very low because entrepreneurs are generally overly
A. pessimistic and receive psychological rewards for their work. B. pessimistic and incur psychological costs from their work. C. optimistic and receive psychological rewards for their work. D. optimistic and incur psychological costs from their work.