If the exchange rate changes from 1 euro per U.S. dollar to 1.2 euros per U.S. dollar, the Euro has:?
What will be an ideal response?
?depreciated, since its value has declined.
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Without a level technological playing field, diminishing marginal returns to human and physical capital deepening are less likely to slow growth in more prosperous countries enough for less prosperous countries to catch up
a. True b. False Indicate whether the statement is true or false
M1 differs from M2 in that:
A. M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1. B. M1 includes currency and balances held in checking accounts, which are not included in M2. C. the assets in M2 are more liquid than the assets in M1. D. M1 is a broader measure of the money supply than M2.
Risk is typically measured:
a. by comparing the size of a firm to other firms operating in the market. b. by looking at the economic profit that a firm has earned in the past few years. c. by determining whether the bonds issued by a firm are of high or low value. d. by comparing how much the stock price fluctuates compared with an average firm. e. by comparing how much the price of the bond falls whenever the price of a firm's product rises.