Can the U.S. dollar and the European euro both appreciate relative to each other?
A. Yes, both countries can gain in this manner.
B. Yes, provided the central banks permit it.
C. No, unless there is a system of fixed exchange rates.
D. No, if one currency appreciates, the other must depreciate.
Answer: D
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Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. What is the marginal cost to you at the socially efficient noise level?
A. $0.75 B. $0.29 C. $0.24 D. $0.25
When a business purchases a $25,000 computer system by writing a check, the business's balance sheet will:
A. only show an increase in liabilities of $25,000. B. show an increase in assets and liabilities of $25,000. C. only show an increase in assets of $25,000. D. still show the same total amount of assets as before the purchase.
Refer to the accompanying figure, which shows the market for cups of coffee. At the original market equilibrium:
A. 50 cups are sold per hour at a price of $1.00 each. B. 60 cups are sold per hour at a price of $1.50 each. C. 40 cups are sold per hour at a price of $2.00 each. D. 50 cups are sold per hour at a price of $2.50 each.
.If Asian economies suffer a serious economic slump, what will happen to U.S. net exports and Aggregate Demand (AD)?
What will be an ideal response?