Suppose that U.S. incomes rise relative to British incomes. Then,
a. the dollar will appreciate and the pound will depreciate
b. the dollar will depreciate and the pound will appreciate
c. the dollar will depreciate and the pound's value will remain constant
d. the dollar will appreciate and the pound's value will remain constant
e. neither the dollar nor the pound will be affected
B
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An outright sale of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
Which of the following is a positive economic statement?
A. Government must maintain the current level of defense spending to keep the nation safe B. The minimum wage should be increased to give people a decent wage C. Americans should buy American products in order to boost the national economy D. Stock prices rose to a new record last month for the fourth month in a row
The price of a magazine is $2, the price of a novel is $5, and the consumer has $33. According to the above table, the rational consumer will purchase
A. 4 magazines and 5 novels. B. 5 magazines and 6 novels. C. 1 magazine and 2 novels. D. 2 magazines and 3 novels.
Many theme parks charge an entrance fee and a per-ride fee equal to zero. This is an example of
A) bundling. B) two-part pricing. C) group price discrimination. D) perfect price discrimination.