If the real exchange rate rises 2%, domestic inflation is 3%, and foreign inflation is 1%, what is the percent change in the nominal exchange rate?
A. 6%
B. 0%
C. 4%
D. 2%
Answer: B
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When someone does not have to pay for a good it:
A. is rational to overconsume. B. is irrational to overconsume. C. is rational to underconsume. D. means there is zero demand for the good.
If the firm facing the demand curve P = 10 - Q still has zero marginal costs and is now a perfect price discriminator instead of a single price monopolist, what will profits be if fixed costs are 12? 
A. 10 B. 13 C. 38 D. 12
A demand curve:
A. shows the relationship between price and quantity supplied. B. indicates the quantity demanded at each price in a series of prices. C. shows the relationship between income and spending. D. graphs as an upsloping line.
Refer to the figure above. The economy is at equilibrium at point B. What would expansionary fiscal policy do?
Move the economy from point B upward along AD2 Move the economy from point B towards point C Move the economy from point B downward along AD2 Move the economy from point B towards point A