If the price of a euro (the European currency) increases from $1.00 to $1.10, then, everything else held constant
A) a European vacation becomes less expensive.
B) a European vacation becomes more expensive.
C) the cost of a European vacation is not affected.
D) foreign travel becomes impossible.
B
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COLA stands for:
A. cost-of-living adjustment. B. cost-of-living aggregate. C. capital operations leasing adjustment. D. capital operations leasing agreement.
Suppose a bank has $500,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $50,000. B. $500,000. C. $5,000,000. D. $10,000.
(Appendix) If relative income standing and job safety both matter, then
A. workers will always be able to find the best suitable job. B. a free market environment for choosing both objectives can bring optimality. C. if no legislation occurs, workers will be unsafe and less equal in income standing. D. a prisoner dilemma problem may result where optimality requires collusion or a law requiring cooperation.
The GDP deflator is a
A. price index that tracks the price level of commodities that firms purchase from other firms. B. statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas. C. statistical measure of a weighted average of prices of commodities that firms produce and sell. D. price index measuring the changes in prices of all new goods and services produced in the economy.