A fixed exchange rate can be an equilibrium rate even if there is a permanent shift in the foreign exchange market supply and demand curves
a. True
b. False
Indicate whether the statement is true or false
False
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If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is a. 0.9. b. 0.8. c. 0.75. d. 0.6.
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price difference across markets is small c. the manufacturer acquires the distributer in the higher priced market d. competition provides little ability for the manufacturer to price above marginal cost
Susan won $2,000 at the blackjack tables on her birthday. Her winnings are an example of
a. permanent income. b. life-cycle income. c. transitory income. d. an in-kind transfer.
____________________ - a perfectly competitive price system will bring about an economically efficient allocation of resources
Fill in the blank(s) with the appropriate word(s).