Research shows that when exchange rates are more volatile, the price differentials are ____ and the convergence is _____.
A) smaller; faster
B) smaller; slower
C) larger; slower
D) larger; faster
Ans: C) larger; slower
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Total cost is calculated as
a. average fixed cost plus average variable cost b. fixed cost plus variable cost c. the additional cost of the last unit produced d. marginal cost plus variable cost e. marginal cost plus fixed cost
If the Fed decreases the money supply, gross domestic product: a. increases by the same amount as the increase in the interest rate
b. decreases by a greater amount than the increase in the interest rate because of the multiplier. c. decreases by the same amount as the decrease in investment. d. decreases by a greater amount than the decrease in investment because of the multiplier. e. decreases by a lesser amount than the decrease in investment because of the multiplier.
Taxes on polluting firms for pollution are intended to
a. raise enough revenue to cut the deficit in half. b. encourage firms to reduce charges by polluting less. c. be efficient, i.e., result in no excess burden. d. raise revenue for general spending needs.
The most important reason for why some people have higher incomes than others is
A. employment discrimination. B. differences in wages and salaries. C. property income. D. government transfer payments.