When the Fed raises the federal funds rate, the exchange rate ________ and net exports ________
A) increases; decreases
B) does not change; decreases
C) does not change; does not change
D) decreases; decreases
E) increases; increases
A
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A corporation is an entity separate and distinct from its owners
a. True b. False Indicate whether the statement is true or false
An industry in which sales tend to magnify cyclical changes in gross domestic product and national income is called:
A. a cyclical industry. B.a counter-cyclical industry. C. a dismal industry. D. a fluctuating industry
Terrell, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is
a. counted as part of the labor force. b. considered frictionally unemployed. c. an underemployed worker. d. not counted as part of the labor force. e. considered as productively active.
Suppose there are no barriers to entry in the market for facial tissues, where two brands dominate the industry. According to the theory of contestable markets, the price charged for facial tissues will be:
A. roughly equal to the cost of producing a box of facial tissue. B. far above the cost of producing a box of facial tissue. C. far below the cost of producing a box of facial tissue. D. much higher for the number-one-selling brand than it is for the number-two-selling brand.