As the dollar price of the Mexican peso falls, the __________ Mexican goods will be for Americans to purchase and the __________ Mexican goods Americans will buy; thus __________ pesos will be demanded
A) less expensive; more, more
B) more expensive; fewer, fewer
C) more expensive; more, fewer
D) less expensive; more, fewer
E) none of the above
A
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How do RBC economists face the business cycle fact that inflation is procyclical?
A) They argue that even though inflation doesn't fit their theory, everything else does, and inflation is not important. B) They note that inflation would not be procyclical if monetary policy were conducted properly. C) They argue that inflation is procyclical only because monetary policy shocks are the main cause of business cycles. D) They use alternative statistical methods that suggest that inflation is countercyclical.
If the marginal cost of producing steel exceeds the marginal utility of using steel, then for economic efficiency,
A. the price of steel should fall. B. society should produce less steel. C. the price of goods made with steel should fall. D. society should direct resources toward steel production and away from the production of other goods.
In the long run, the economic profits of a monopolistically competitive firm
A. will be the average short-run profits earned in the last five years. B. will be the same as in the short run. C. equal zero. D. will tend to be larger than in the short run.
Refer to the table below. If European governments decided to fix the price of a euro at $0.80, they would have to:
The table below shows the supply and demand schedules for the European euro.
A. Buy 286 euros
B. Buy 114 euros
C. Sell 114 euros
D. Sell 286 euros