An increase in the price level shifts the money demand curve to the left, causing interest rates to increase
a. True
b. False
Indicate whether the statement is true or false
False
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If Happy Babies sells its baby formula in the United States for 30 percent less than it does in Canada, this is an example of ________.
A) peak-load pricing B) two-part pricing C) third-degree price discrimination D) second-degree price discrimination
If a government increases its budget deficit, then interest rates
a. rise and the real exchange rate appreciates. b. fall and the real exchange rate depreciates. c. rise and the real exchange rate depreciates. d. fall and the real exchange rate appreciates.
Shadow prices:
A. are paid in terms of opportunity costs. B. are set by the government. C. exist only in black markets. D. are illegal.
As compared to a pollution tax, a command-and-control policy will increase production costs by a ________ amount and increase equilibrium price by a ________ amount.
A. larger; larger B. larger; smaller C. smaller; larger D. smaller; smaller