According to classical macroeconomic theory, changes in the money supply change nominal but not real variables
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario C will be
A) -3%. B) -1%. C) 2%. D) 5%.
When there is only one buyer in a market, there is a
A) buyer's monopoly. B) monopoly. C) monopsony. D) buyer's cooperative.
It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate this claim
Zari takes a summer course in London, England. She doesn't buy British pounds at the U.S. airport, where the rate is 1 pound = $1.60 . Upon arrival in London, she finds that she can buy pounds for $1.65 each. Which of the following is true?
a. Zari would have been better off if she had bought pounds in the United States where U.S. dollars were cheaper. b. Zari would have been better off if she had bought pounds in the United States where pounds were less expensive. c. The pounds were more expensive in London because a currency is always most valued in its home country. d. The pounds were more expensive in the United States because they are less available there. e. It doesn't matter where she buys the pounds, since she can't use U.S. money anyway once she's in England.