What does purchasing-power parity imply about the real exchange rate? Explain what this means
That it is equal to one. The number of dollars it takes to buy goods in the U.S.buys enough foreign currency to buy the same amount of goods in a foreign country.
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If savers do not have fixed savings goals, the supply curve of loanable funds will generally be
A. horizontal. B. downward sloping. C. vertical. D. upward sloping.
A wage offer that is above the market wage, intended to avoid the adverse selection problem, is called a(n)
a. efficiency wage b. union wage c. selection wage d. spurious wage e. opportunity cost wage
Explain how short-run and long-run equilibrium in monopolistic competition differ. Use graphs to illustrate your answer. Be sure that your graphs are completely and correctly labeled.
What will be an ideal response?
If Harry only pays $25,000 to purchase a new car even though he would have been willing to pay as much as $35,000 for the car, this indicates that
What will be an ideal response?