Exchange rates in what is termed the “medium run”
A. will be altered by an economic upswing because consumers buy more goods including imports when disposable income goes up.
B. will be unaffected by economic changes in personal income or consumption spending.
C. will appreciate for a country having an economic boom when others are not.
D. All of the above are correct.
Answer: A
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Which of the following is a possible reason for a comparatively steeper demand curve for health care? a. A large increase in the price of health care leads to a more than proportionate fall in the quantity demanded for health care. b. The demand curve for health care is comparatively steeper than other products, because health care is a Giffen good. c. A change in the price of health care
leads to no change in the profit earned by the suppliers. d. A large increase in the income of households leads to a less than proportionate increase in the quantity demanded. e. A large increase in price does not cause a reduction in the purchase of health care by the same proportion.
In the Keynesian model, the most important influence on planned consumption is
a. the interest rate. b. expectations. c. disposable income. d. the price level.
Autarky is the situation of national self-sufficiency, in which there is no economic interaction with foreign producers or consumers
Indicate whether the statement is true or false
Why and how do economic problem arise?
What will be an ideal response?