The value of a dollar varies
A) inversely with the price of gold.
B) inversely with the price level.
C) directly with the price level.
D) directly with the purchasing power of other major currencies.
B
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Critically evaluate the statement "Honolulu is an expensive place to live. Therefore the inflation rate must be high in Honolulu."
What will be an ideal response?
In the foreign exchange market, U.S. residents wishing to purchase foreign exports or foreign real and financial assets must:
A) demand U.S. dollars by supplying foreign currency. B) demand U.S. dollars by supplying U.S. dollars. C) supply U.S. dollars by demanding foreign currency. D) none of the above.
Answer the following statements true (T) or false (F)
1. The rule of reason states that monopolies that behave well are still illegal. 2. Advertising is considered a form of product differentiation. 3. Oligopolies always produce differentiated products. 4. Price stability is common in oligopolies. 5. Perfect competition always provides a lower price than monopolistic competition or an oligopoly. 6. The Clayton Act prohibits price discrimination, if it substantially reduces competition. 7. A four-firm concentration ratio indicates the number of firms in the industry. 8. The Herfindahl Index is calculated by summing the squares of the market shares of each firm in the industry.
Which of the following is an asset of a family?
A. Unpaid credit card balance B. Student loan C. Mortgage D. Checking account balance