The kinked demand curve is an explanation of sticky prices
a. True
b. False
Indicate whether the statement is true or false
True
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Assuming no change in the nominal exchange rate, how will a higher rate of inflation in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise. B) The real exchange rate will be unaffected. C) The real exchange rate will fall. D) The impact on the real exchange rate cannot be predicted.
With which country did the Debt Crisis of the early 1980s begin?
A) France B) Mexico C) Argentina D) Japan E) Germany
Solutions to the moral hazard in equity contracts include all of the following EXCEPT
A) government regulations to increase information. B) the use of financial intermediaries. C) the use of debt contracts. D) government ownership of resources.
Countries that typically run a trade surplus are:
A. China, Germany and the US. B. China, Germany, and Japan. C. Japan, Germany and the US D. China, Japan, and the US.