If the forward premium of the euro is positive, the exchange market's consensus appears to be that over the period of a forward contract, the spot exchange rate value of the euro will
A. decrease.
B. remain constant.
C. fluctuate randomly.
D. increase.
Answer: D
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Which of the following cases represent the smallest increase in the real national debt?
a. The price level increases by 200 percent and the nominal debt increases by 200 percent. b. The price level increases by 200 percent and the nominal debt increases by 100 percent. c. The price level increases by 200 percent and the nominal debt increases by 500 percent. d. The price level increases by 100 percent and the nominal debt increases by 300 percent. e. None of the above
Use the following graph for a private closed economy to answer the next question. 
The multiplier for the above economy is
A. 2. B. 3. C. 4. D. 5.
According to the law of demand, ceteris paribus,
A. The responsiveness of consumer demand to a change in the price of a good is measured by the price elasticity of demand. B. A consumer will purchase more of a good at higher prices than at lower prices. C. The quantity demanded increases at lower prices. D. Price and quantity supplied are directly related.
Even though government-operated firms do not have to make a profit, they usually operate efficiently
Indicate whether the statement is true or false