If the government of a country uses expansionary monetary policy:
A) its currency will appreciate.
B) its currency will depreciate.
C) its currency will initially appreciate and then depreciate.
D) its value of its currency in the foreign exchange market will not be affected.
B
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The fraction of an industry's sales that are accounted for by the largest firms is called
A) the four-firm oligopoly ratio. B) the four-firm competition ratio. C) the four-firm industry ratio. D) the four-firm concentration ratio.
If 12 units of a good are sold when the price is $1 per unit, and 8 units are sold at a price of $1.50 per unit, then demand is
a. elastic. b. inelastic. c. of indeterminate elasticity. d. unit elastic.
A recent news report lamented the plight of corn farmers in Wisconsin due to a severe drought. Which of the following best describes the effect on corn farmers in Minnesota, where sufficient rainfall occurred?
a. Their revenue increases because price increases and demand is elastic. b. Their revenue increases because price increases and demand is inelastic. c. Their revenue decreases because price decreases and demand is inelastic. d. Their revenue decreases because price increases and demand is elastic.
In the generalized dividend model, the current stock price is the sum of
A) the actual value of the future dividend stream. B) the present value of the future dividend stream. C) the present value of the future dividend stream plus the actual future sales price. D) the present value of the future sales price.