The lower the exchange rate, the cheaper are foreign-produced goods and services
Indicate whether the statement is true or false
FALSE
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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 20 percent, an initial deposit of $850 will lead to total deposits of
A) $425. B) $850. C) $4,250. D) $42,500.
When the average total cost is $16 and the total cost is $800, then the number of units the firm is producing is
A) impossible to determine with the information given. B) 12,800. C) 784. D) 50.
The market for gasoline in May is in equilibrium, at a market clearing price of $4.50 per gallon. After Memorial Day, the demand curve for gasoline increases, which causes
A) the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise. B) the demand curve for gasoline to shift to the right, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall. C) the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to rise. D) the demand curve for gasoline to shift to the left, creating a shortage at $4.50 per gallon which causes the market clearing price of gasoline to fall.
Answer the following statements true (T) or false (F)
1. The economic gains from expanding international trade are measured in hundreds of billions of dollars. 2. Some environmentalists worry that large firms may evade environmental protection laws by moving their production to countries with loose or nonexistent pollution standards, trading a clean environment for jobs. 3. Protectionism in international trade saves jobs in the specific industry being protected, but costs jobs in other unprotected industries. 4. A number of different studies have attempted to estimate the cost to consumers in higher prices per job saved through protectionism. The costs of saving jobs through protectionism can be high.