According to the theory of purchasing power parity, the exchange rate between two countries reflects
A) the interest rates in the two countries.
B) the unemployment rates in the two countries.
C) government spending in the two countries.
D) differences in the overall price levels in the two countries.
D
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When the Dallas Cowboys score more than 30 points in a game, they win the game. This is an example of
A) an economic theory. B) a correlation. C) an incentive to win the game. D) a normative statement. E) a statement on the margin.
A disadvantage of unit excise taxes is they create the incentive _____
a. for producers to favor smaller products over larger products b. for producers to favor expensive products over inexpensive products c. for buyers to purchase more of the good then they otherwise would d. for buyers to shift to substitute goods with ad valorem excise taxes
If interest rates go down, which of the following would most likely occur:
A. Banks will pay more to borrow money. B. The stock market will go up. C. Consumers will spend less. D. U.S. exports will decrease.
Exhibit 8-10 Consumption function
?
hIn Exhibit 8-10, which of the following could cause the shift from C1 to C2?
A. higher interest rates B. an increase in disposable income C. a decrease in disposable income D. lower tax rates