Depreciation of the dollar will:
A. decrease the prices of both U.S. imports and exports.
B. increase the prices of both U.S. imports and exports.
C. decrease the prices of U.S. imports but increase the prices to foreigners of U.S. exports.
D. increase the prices of U.S. imports but decrease the prices to foreigners of U.S. exports.
D. increase the prices of U.S. imports but decrease the prices to foreigners of U.S. exports.
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Economists talk about trade-offs a lot because they have come to understand that whenever there is a winner from a policy or transaction, there must also be a loser.
Answer the following statement true (T) or false (F)
Monetary policy will have a large income effect provided the
A) IS curve is flat. B) LM curve is steep. C) IS curve is steep. D) LM curve is flat.
To keep employees from shirking, invest in greater monitoring
a. when monitoring is expensive relative to its benefits b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives fail to solve either moral hazard and adverse selection problems with employees
LISA BETH Mustard Company undertakes an advertising campaign and finds that within the industry's relevant price range, the price elasticity of demand for its own mustard fell from 3.5 to 0.94 . As a result, we would expect that LISA BETH
a. would raise its price to increase total revenue b. would cut its price to increase total revenue c. would increase output to increase total revenue d. would increase output to reduce average total cost e. operates in a perfectly competitive market