Suppose a country is perceived to have an overvalued real exchange rate does not devalue. Which of the following would we expect to occur over time?
A) a reduction in its price level
B) a real depreciation of its currency
C) a reduction in its trade surplus
D) all of the above
E) none of the above
D
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In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C
A) changes in inventories cannot be determined. B) unused industrial capacity exists in the economy. C) unplanned inventories increase. D) unplanned inventories decrease.
On January 1, Derek had CD recording devices valued at $30,000. During the year, the value of Derek's devices depreciated by $20,000. He spent $30,000 on new devices
Derek's net investment was ________ and at the end of the year Derek had capital valued at ________. A) $20,000; $60,000 B) $10,000; $40,000 C) $10,000; $60,000 D) $30,000; $40,000 E) $40,000; $70,000
The pure competitor usually charges higher prices and offers more output than the monopolist or oligopolist
Indicate whether the statement is true or false
Through their marketing and advertising efforts, companies try to:
A. increase the elasticity of their demands. B. increase price more than quantity sold. C. augment the impact of the snob effect. D. minimize the impact of the snob effect.