From the U.S. perspective, a drop in the price of foreign exchange means that
a. fewer U.S. dollars are needed to purchase foreign currency
b. more U.S. dollars are needed to purchase foreign currency
c. worldwide, imports will become more expensive
d. worldwide, exports will become cheaper
e. transaction costs on international markets will decrease
A
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Social Security payments:
A. now hold their value over time. B. are adjusted for inflation using the CPI. C. undergo cost-of-living adjustments. D. All of these statements are true.
An important assumption that is made when constructing a supply schedule is
a. only price and quantity matter in determining supply. b. firms always want to sell a certain amount of a product. c. supply is too important to be left to the marketplace. d. all other determinants of supply are held constant. e. demand has a positive slope.
Which of the following goods is not excludable and not rival in consumption?
a. fish in the ocean b. tickets to a professional basketball game c. a tornado siren d. a premium television channel
Sophia receives a $400 gift card for her campus bookstore from her parents. Which of the following is true regarding the $400 gift card?
A. It is counted in only M2. B. Stored-value cards are not counted in either M1 or M2. C. It is counted only in M1. D. It is included in both M1 and M2.