Over a short-run period (i.e., week or month), ________ dominate exchange rate movements
A) short-run inflation differentials
B) nominal price changes
C) relative price changes
D) None of the above
C
You might also like to view...
The IS curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money B) an increase; investment C) a decrease; money D) a decrease; investment
The authors explain that the marginal cost of production does not have to be constant in order to maximize profits under intemporal price discrimination
Which of the following is NOT an example of changing marginal costs under profit-maximizing intertemporal price discrimination? A) Marginal cost increases sharply after the initial marketing stages when the product is sold to the broader market of consumers. B) Marginal costs decline over time due to learning-by-doing. C) Marginal costs decline over time because the producer sells less expensive versions of the product in later stages of marketing (e.g., hard-cover versus paper-cover books). D) Marginal costs decline over time due to economies of scale.
An example of a regressive tax is the
A. personal income tax. B. corporate income tax. C. Social Security tax. D. state inheritance tax.
Use the following diagram to answer the next question.
Assume the economy is initially on aggregate demand AD3. The Fed should ________.
A. lower the prime rate B. lower the discount rate C. raise the reserve requirement D. buy bonds