In determining the exchange rate between U.S. dollars and Swiss francs, all of the following are assumed constant along the supply curve for francs except one. Which is not assumed constant?
a. U.S. interest rates
b. Swiss income
c. expected rates of inflation in the United States
d. expected rates of inflation in Switzerland
e. the price of the Swiss franc
E
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Double taxation of corporate earnings means
A. for individuals who get dividends on personal income, tax rates are twice as high as for wage earners. B. stockholders pay personal income taxes and corporation taxes on profits. C. stockholders do not get the plowback but still pay taxes on it. D. the corporation tax raises stock prices so individuals also pay a capital gains tax in addition to a tax on dividends.
Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a bicycle in the United States is ________ while the opportunity cost of producing a bicycle in Mexico is ________
A) 8 computers; 10 computer B) 4 computers; 10 computers C) 5 computers; 2 computers D) 2 computers; 5 computers
Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:
A. become vertical. B. shift inward or to the left. C. shift outward or to the right. D. become horizontal.
The job finding rate
A. equals 1 minus the job loss rate. B. remains constant over the business cycle. C. rises in expansions. D. rises in recessions.