The price level in Country A is 250 . The price level in Country B is 300 . If purchasing-power parity holds, what is the nominal value of Country A's currency in the market for foreign exchange with Country B? Show your work
300/250 = 1.2
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If the government undertakes expansionary fiscal policy, it might:
A. increase income taxes. B. decrease income taxes. C. decrease government spending. D. increase corporate income taxes.
Which of the following is the best example of the concept of "normal"?
A. Hot dogs and hot dog buns B. SUVs C. Coke and Pepsi D. Ramen noodles
The income elasticity of demand is the percentage change in the ________ divided by the percentage change in ________
A) quantity demanded; the price of a substitute or complement B) quantity supplied; price C) quantity demanded; price D) quantity demanded; income E) quantity demanded when income changes; the quantity supplied
In the United States, the government coordinates most of the economic activity
Indicate whether the statement is true or false