Which of the following statements is correct?
a. In the short run, interest rate differentials have the greatest impact on exchange rates.
b. In the medium run, differences in growth rates of aggregate demand have the greatest impact on exchange rates.
c. In the long run, price and inflation differentials have the greatest impact on exchange rates.
d. All of the above are correct.
d
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Refer to Figure 4-15. How much of the tax is paid by sellers?
A) $2 B) $5 C) $7 D) $12
Which of the following strategies that a union might pursue would result in the lowest wage rate for its members?
a. Maximizing the total wage bill b. Maximizing employment of its members c. Restricting union membership severely d. Maximizing the total economic rent obtained by its members
Stocks and bonds are examples of:
a. natural resources. b. financial capital. c. physical capital. d. financial labor. e. internal capital.
Consumer sovereignty implies that
a. producers determine what goods will be produced and consumers are free to choose from among them b. consumers choose the composition of our economy's output c. goods are produced on the basis of need d. the government directs the production of consumer goods in the economy e. a committee of consumers determines the key issues in the economy