Everything else being equal, one can expect the euro to appreciate relative to the dollar if
A. Americans decrease their travel to Germany.
B. the Germans add to their holdings of U.S. Treasury bills.
C. Americans purchase land in Germany and build factories.
D. American exports to Germany increase.
Answer: C
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Excess capacity implies
A. productive inefficiency. B. productive efficiency. C. allocative efficiency. D. allocative inefficiency.
Katz and Krueger found that minimum wage laws had a negligible impact on teenage unemployment in the fast-food industry. Describe the characteristics of labor demand and supply that might produce such a result
What will be an ideal response?
When two goods are unrelated
A) the demands for both goods will be inelastic. B) cross price elasticity of demand will be 0. C) cross price elasticity of demand will be negative. D) cross price elasticity of demand will be positive.
Which could be sources of funding for a government that wants to increase government expenditures?
A. both taxes and borrowing B. borrowing only C. neither taxes nor borrowing D. taxes only