In the New Keynesian open economy model
A) the nominal exchange rate is always fixed.
B) prices are flexible.
C) net exports depends on the relative price of foreign goods to domestic goods.
D) the nominal exchange rate is always flexible.
C
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A general medium of exchange tends to
A) reduce transaction costs. B) make bartering more effective. C) reduce the incentive to specialize and pursue one's comparative advantage. D) accomplish all of the above. E) accomplish none of the above.
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients. This practice of self-referral is an example of:
a. adverse selection. b. cognitive dissonance. c. physician-induced demand. d. moral hazard. e. res ipsa loquitor.
The C + I + G curve lies __________ the C + I + G + Xn curve.
Fill in the blank(s) with the appropriate word(s).
Industries may be oligopolistic due to economies of scale.
Answer the following statement true (T) or false (F)