If the U.S. dollar appreciates relative to the Brazilian cruzeiro, then
a. the U.S. dollar-cruzeiro exchange rate will increase
b. U.S. goods become less expensive in Brazil
c. Brazilian goods become more expensive in the U.S.
d. Brazilian investors will pay fewer cruzeiros to buy each U.S. dollar
e. the U.S. will import more from Brazil
E
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In the ISLM framework, an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?
A) Some firms will leave the market. B) Firms will join together to keep others from entering. C) New firms will enter the market, thereby eliminating the economic profit. D) Firms will continue to earn economic profit.
Learning curves mean
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When there is a permanent fall in the foreign money supply, the exchange rate:
a. falls in the short run and rises slightly in the long run. b. falls in the short run and falls more in the long run. c. rises in the short run and falls slightly in the long run. d. rises in the short run and rises more in the long run.