When demand is inelastic
A. the proportional change in quantity demanded is equal to the proportional change in price.
B. quantity demanded is very responsive to a change in price.
C. quantity demanded is not very responsive to a change in price.
D. producers react quickly to price changes.
Answer: C
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A speculative attack involves massive sales of a currency or purchases of a currency that cause a sharp change in the exchange rate under a exchange rate system
A) weak; strong; fixed B) strong; weak; fixed C) weak; strong; floating D) strong; weak; floating
A production function tells the firm
A) the maximum it can expect to produce with a given mix of inputs. B) the average it can expect to produce with a given mix of inputs. C) the minimum it can expect to produce with a given mix of inputs. D) the average level of production for other firms in the industry.
If the Fed sells bonds, the short run impact of this policy will tend to include: a. an increase in the inflation rate. b. a reduction in unemployment
c. an increase in real output. d. an increase in real interest rates.
When two or more nations engage in an exchange of goods, this is known as
a. international trade. b. interstate commerce. c. free trade. d. intrastate commerce. e. outsourcing.