Which of the following would most likely cause a nation's currency to appreciate?
a. an increase in inflation of the nation's trading partners
b. an increase in the nation's domestic inflation rate
c. a decrease in domestic real interest rates
d. an increase in real interest rates abroad
A
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The transactions approach to measuring money includes
A) traveler's checks. B) government bonds. C) the value of shares of stock in commercial banks. D) all of these.
The market for lawn services is perfectly competitive. Larry's Lawn Service cannot increase its total revenue by raising its price because ________
A) Larry's supply of lawn services is perfectly inelastic B) the demand for Larry's services is perfectly inelastic C) Larry's supply of lawn services is inelastic D) the demand for Larry's services is perfectly elastic
The figure above shows Sam's budget line. Which of the following formulas represents Sam's budget equation?
A) $60.00 = $1.50/Qg + $3.00/Qc B) $60.00 = Qg /$1.50 + Qc /$3.00 C) $60.00 = $1.50(Qg) + $3.00(Qc) D) $60.00 = $1.50(Qg) - $3.00(Qc)
If the optimal forecast of the return on a security exceeds the equilibrium return, then
A) the market is inefficient. B) no unexploited profit opportunities exist. C) the market is in equilibrium. D) the market is myopic.