An economic expansion causes
a. the federal budget deficit to rise.
b. federal government tax receipts to fall.
c. federal government spending to rise.
d. transfer payments to fall.
e. transfer payments to rise.
D
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Assume that the exchange rate moves from $1 = €1.2 to $1 = €0.97 . This change in exchange rate indicates that:
a. the euro has depreciated in value. b. the price of a holiday in Europe has become less expensive for U.S. residents. c. the U.S. dollar price of European chocolate has fallen. d. the U.S. dollar has appreciated in value. e. the euro has appreciated in value.
A fixed exchange rate, say, Mexican pesos per dollar, is determined by
a. U.S. consumers that buy Mexican exports b. the U.S. government c. U.S. businesses that export to Mexico d. the foreign exchange market e. the levels at which other exchange rates float
Which of the following is true in a perfectly competitive market?
a. Buyers can discern sharp differences in products. b. Buyers can easily switch from one seller to another. c. Buyers tend to have strong brand loyalties. d. Buyers have a very strong influence on price.
Assume that your nominal wage was fixed at $15 an hour, and the price index rose from 100 to 105. In this case, your real wage has:
A. Decreased to $10 B. Increased to $15.75 C. Decreased to $14.29 D. Increased to $20