In the figure above, suppose the economy is initially at point B. If people come to believe that the exchange rate will fall in the future, the supply of dollars ________ and the market moves to point such as ________
A) decreases; A
B) decreases; E
C) increases; D
D) increases; C
D
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What point is the profit maximizing level of output?
A. MC=MR B. MR=ATC C. MC=ATC D. D=MC
Use the information in the above table. The top 40 percent of the population earn
A) 66.7 percent of the income. B) 55.5 percent of the income. C) 50.0 percent of the income. D) 44.4 percent of the income.
The default effect
A. refers to the observation that people tend to value something more highly when they own it than when they don't. B. refers to the observation that people tend to value something more highly when they don't own it than when they do. C. refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default. D. refers to the observation that people do not have a strong attachment to the status quo.
What are the main arguments presented against flexible exchange rates?