When a country's government budget deficit decreases,
a. the real exchange rate of its currency and its net exports increase.
b. the real exchange rate of its currency and its net exports decrease.
c. the real exchange rate of its currency increases and its net exports decrease.
d. the real exchange rate of its currency decreases and its net exports increase.
d
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A regulated natural monopoly is allowed to set a price which will enable it to earn an above-normal profit
a. True b. False Indicate whether the statement is true or false
Market risk is:
A. risk that is broadly shared by the entire market or economy. B. risk that is unique to a particular company or asset. C. likely to be predictable, and generally reflected in interest rates. D. the reason the economy suffers inflation from time to time.
The cross-price elasticity of demand is the percentage change in the quantity of good A that is demanded as a result of a percentage change in the price of good B.
Select whether the statement is true or false. A. True B. False
Suppose that a firm successfully introduces a highly profitable new product. If this new product offers less marginal utility per unit to consumers than existing substitute products, then the:
A. laws of economics have been violated. B. new product must have increasing, not diminishing, marginal utility. C. existing products were being produced at a loss. D. new product has a lower price than the existing substitute products.