Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's risk level falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro.
b. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market falls, causing an uncertain change in the value of the euro.
c. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro.
d. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
e. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro.
.C
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Positive economics does not require us to believe that actual happiness is the same as utility as modeled in economic theory.
Answer the following statement true (T) or false (F)
National income:
a. is included in gross private domestic investment. b. includes the sum of all payments made to resource owners for the use of their resources. c. includes depreciation. d. is often measured as C + I + G + (X ? M).
Compared to the size of GDP in 2014, the net national debt was approximately
A. 10 percent as large. B. 33 percent as large. C. 60 percent as large. D. about twice as large.
When the price of a normal good decreases, people increase their consumption of the good. The reason is
A. the income effect only. B. the law of diminishing marginal utility. C. the substitution and income effects. D. the substitution effect only.