If purchasing-power parity holds, a bushel of rice costs $10 in the U.S., and the nominal exchange rate is 25 Thai baht per dollar, what is the price of rice in Thailand?
a. 400 baht
b. 250 bhat
c. 100 bhat
d. None of the above is correct.
b
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If the Fed wants to increase the federal funds rate, it will conduct an open market operation in which it ________ government securities and thereby shifts the ________ curve ________
A) sells; RD; leftward B) sells; RS; rightward C) sells; RS; leftward D) buys; RD; rightward E) buys; RS; leftward The figure above shows the market for reserves.
According to new classical economics, fiscal policy can change equilibrium real GDP only if it changes the price level or one of the determinants of aggregate supply, and people expect this change
a. True b. False Indicate whether the statement is true or false
Measured as a share of national income, government expenditures on income transfers during the last 70 years have
a. grown rapidly. b. declined substantially. c. been virtually unchanged. d. increased throughout much of that period, but they have declined substantially since 1980.
If a change in the price of a good results in no change in total revenue, then
a. the demand for the good must be elastic. b. the demand for the good must be inelastic. c. the demand for the good must be unit elastic. d. buyers must not respond very much to a change in price.