If at current exchange rates it was cheaper to buy a product in country A than country B, the purchasing power parity theory would increase the relative exchange value of country A's currency
a. True
b. False
Indicate whether the statement is true or false
True
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In an economy, U = the number of adults who are unemployed, E = the number of adults who are employed, and NLF = the number of adults not in the labor force. The unemployment rate of the economy is equal to: a. U/(E + NLF)
b. U/E. c. U/(U + E). d. U/(E + NLF). e. U/(U + E ? NLF).
If the interest rates in the Eurozone increase, then which of the following is likely to happen?
(a) Deposits would increase in American banks. (b) Money would flow into the European banking system. (c) The euro would tend to depreciate relative to the dollar. (d) None of the above.
Between the U.S. and Nepal, Nepal invests less in new factories and equipment. This will likely cause
A. the U.S.'s production possibilities frontier to shift outward faster than Nepal's. B. Nepal's production possibilities frontier to shift inward faster than the U.S.'s. C. the U.S.'s production possibilities frontier to shift inward faster than Nepal's. D. Nepal's production possibilities frontier to shift outward faster than the U.S.'s.
When supply increases and the supply curve shifts to the right, equilibrium price and equilibrium quantity will both increase.
Answer the following statement true (T) or false (F)