Currency appreciation should reduce net exports and, therefore, decrease aggregate demand.
Answer the following statement true (T) or false (F)
True
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Describe the chain of events leading to exchange rate determination for the following cases:
(a) An increase in U.S. money supply (d) Increase in growth rate of U.S. money supply (c) Increase in world relative demand for U.S products (d) Increase in relative U.S. output supply
Countries in which wages adjust slowly to changes in the supply of and demand for labor are likely to have ________ sacrifice ratio
A) an infinite B) a high C) a low D) a zero
Consider a medical breakthrough that led to the discovery of a simple microchip, which when inserted inside the human ear could prevent certain chronic diseases. The price elasticity of demand for that microchip would most likely be _____
a. highly elastic b. highly inelastic c. undefined d. negative only for high prices e. positive only for high prices
Installing software to limit screen time, forcing you to uninstall it every time you reach the limit, is an example of:
A. a commitment device. B. increasing the cost of a vice. C. can be explained through behavioral economics. D. All of these are true.