Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars
B) a decrease in the demand for dollars
C) a decrease in the supply of dollars
D) a decrease in the demand for imports from foreign countries
Answer: B
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If household incomes go up and almost all the increases are spent on consumer goods,
a. the marginal propensity to consume is high. b. the marginal propensity to consume is low. c. planned investment must be decreasing. d. the marginal propensity to save is high.
If at current exchange rates it was cheaper to buy a product in country A than country B, the purchasing power parity theory would increase the relative exchange value of country A's currency
a. True b. False Indicate whether the statement is true or false
Larry looks at his wage statement. How can he recognize what is known as payroll tax?
a. The tax will be funded entirely by his employer. b. The tax will be entirely funded from his own wages. c. The tax will be broken down into an hourly rate. d. The tax will come from his wages and his employer’s contribution.
Government is on the:
A. demand side of factor markets and the supply side of goods markets. B. supply side of factor markets and the demand side of goods markets. C. demand side of both factor markets and goods markets. D. supply side of both factor markets and goods markets.