A decrease in the market clearing exchange value of the home nation's currency in terms of the currency of another nation is a home currency
A. depreciation.
B. devaluation.
C. appreciation.
D. revaluation.
Answer: A
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At one time, policymakers interpreted the Phillips curve as offering a menu of inflation–unemployment choices. Today, the curve is no longer viewed this way. Why has the interpretation changed?
What will be an ideal response?
Calvin buys newspapers and delivers them (by bike) to his customers' houses while Hobbes sells lemonade at his lemonade stand. One day they compare notes and find that Calvin, after paying for the newspapers and the maintenance on his bike, clears $5 per hour while Hobbes, after paying for the lemonade ingredients and upkeep of his lemonade stand, clears $4.50 per hour. The newspaper and lemonade businesses are the only possible trades for Calvin and Hobbes. a. If Calvin and Hobbes are identical, how much economic profit (per hour) is each making? b. Suppose Hobbes is slower on his bike than Calvin -- and he could only deliver half as many newspapers per hour. What's his economic profit in the lemonade business?
What will be an ideal response?
A bank can lend out its excess reserves but not its required reserves
a. True b. False Indicate whether the statement is true or false
The buyer's reservation price for a particular good or service is the:
A. same as the market price. B. largest price the buyer would be willing to pay for it. C. smallest price the buyer would be willing to pay for it. D. price the buyer must pay to ensure he or she gets it.