If purchasing-power parity holds, when a country's central bank increases the money supply, its
a. price level rises and its currency appreciates relative to other currencies in the world.
b. price level rises and its currency depreciates relative to other currencies in the world.
c. price level falls and its currency appreciates relative to other currencies in the world.
d. price level falls and its currency depreciates relative to other currencies in the world.
b
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During the Great Depression, the monetary base in the U.S.:
A. was highly erratic. B. increased. C. remained constant. D. decreased significantly.
Other things the same, we'd expect that a job with less pleasant working conditions pays
a. more; this is known as an efficiency wage. b. more; this is known as a compensating differential. c. less; this is known as an efficiency wage. d. less; this is known as a compensating differential.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. What is Leo's opportunity cost of making a pound of fudge?
A. 0.8 of a pound of toffee B. 4 pounds of toffee C. 5 pounds of toffee D. 1.25 pounds of toffee
Wages are sticky when:
What will be an ideal response?