If the price level rises, what will happen to the demand for reserves?
a. It will shift outward.
b. It will shift inward.
c. It will remain unchanged.
d. It depends on what happens to interest rates.
a
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Refer to Figure 13-12. If the diagram represents a typical firm in the designer watch market, what is likely to happen in the long run?
A) The firms that are making losses will be purchased by their more successful rivals. B) Inefficient firms will exit the market and new cost-efficient firms will enter the market. C) Firms will have to raise their prices to cover costs of production. D) Some firms will exit the market causing the demand to increase for firms remaining in the market.
Higher tariffs and quotas cause a country's currency to ________ in the ________ run, everything else held constant
A) depreciate; short B) appreciate; short C) depreciate; long D) appreciate; long
Current account transactions are records of the income and expenditures from exports and imports, plus international financial investments and borrowing
a. True b. False
In long-run equilibrium, a perfectly competitive firm's short-run marginal cost curve crosses the long-run average cost curve at the lowest point on the long-run average cost curve
a. True b. False Indicate whether the statement is true or false