Assume that a Tesla Model 3 sells for $30,000 in the United States and that the exchange rate is $1 = 0.8 euro. For purchasing power parity to hold, the same car in Europe should sell for
A. 36,250 euros.
B. 37,500 euros.
C. 24,000 euros.
D. 30,000 euros.
Answer: C
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Suppose real GDP is currently $12.5 trillion and potential real GDP is $13 trillion. If the president and Congress increased government purchases by $500 billion, what would be the result on the economy?
. What will be an ideal response?
According to the efficient markets hypothesis, worse-than-expected news about a corporation will
a. have no effect on its stock price. b. raise the price of the stock. c. lower the price of the stock. d. change the price of the stock in a random direction.
The selling price of a property is $96,000. This can be financed if the buyer can put 10 percent down and pay a loan origination fee of 1.5 percent. How much cash must the buyer produce to complete this transaction?
A) $10,080 B) $10,896 C) $11,040 D) $11,084
Suppliers with a high supply elasticity will bear a ________ tax incidence, while suppliers with a low supply elasticity will bear a ________ tax incidence
A) lower; higher B) higher; lower C) lower or no; higher or full D) A and C