When the real exchange rate for the dollar depreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall.
b. less expensive relative to foreign goods, which makes exports fall and imports rise.
c. more expensive relative to foreign goods, which makes exports rise and imports fall.
d. more expensive relative to foreign goods, which makes exports fall and imports rise.
a
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Subsidies ________ the price paid by the buyer and ________ the price received by the seller
A) increase, increase B) increase, decrease C) decrease, increase D) decrease, decrease E) do not change; increase
Which of the following must be true about functions in the duality picture:
A. The utility function is homogeneous of degree 1. B. The indirect utility function is homogeneous of degree 1 in income. C. The uncompensated demand functions are homogeneous of degree 1. D. Both (a) and (b). E. Both (b) and (c). F. Both (a) and (c) G. All of the above. H. None of the above.
If the quantity demanded of a good decreases by 10 percent when the price of the good increases by 5 percent, the elasticity of demand is -2.00
Indicate whether the statement is true or false
If there are no unintended changes in inventories, the economy is at its equilibrium level of real gross domestic product (GDP) demanded
a. True b. False Indicate whether the statement is true or false