According to the classical model, prices and wages
A) must be set by government.
B) move upward easily, but are "sticky" downward.
C) are flexible.
D) move downward easily, but are "sticky" upward.
C
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Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect
A. the price of German bicycles to increase in the United States. B. employment to decrease in the U.S. bicycle industry. C. employment to decrease in the German bicycle industry. D. profits to rise in the U.S. bicycle industry.
A person who is not working and who has looked for work in the past, but is not looking for work now is not considered "unemployed."
Indicate whether the statement is true or false
An exchange rate depreciation appears to consumers as a markdown on foreign products
a. True b. False Indicate whether the statement is true or false
Zero-down mortgages meant that borrowers were ______.
a. more motivated to find a way to pay their mortgage b. more likely to default and walk away from their mortgage c. less able to borrow more than they could afford d. more able to build equity quickly