What is the impact on the foreign exchange rate?
a. The euro exchange rate declines from $1.00 per euro to $0.50 per euro.
b. The dollar price of euros decreases from $1.50 to $1.00.
c. The euro appreciates in value from $1.00 per euro to $1.50 per euro.
d. The dollar price of euros increases from $1.00 to $1.50.
b. The dollar price of euros decreases from $1.50 to $1.00.
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If a firm's production process exhibits increasing returns to scale, then doubling all the firm's inputs will lead output to ________.
A. double. B. more than double. C. fall by one-half. D. less than double.
Indicators of economic activity that move at the same time as the overall economy are called ________ indicators.
A. short-term B. real C. long-term D. coincident
Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls. B) Price controls may take the form of price ceilings or price floors. C) Price ceilings below the equilibrium price can cause black markets to develop. D) Rent controls are examples of price floors.
To reduce aggregate demand, the government may reduce _____ or increase _____
Fill in the blank(s) with correct word