When the U.S. exchange rate rises and the expected future exchange rate does not change, the expected profit from buying U.S. dollars today
A) also rises.
B) falls.
C) does not change.
D) may rise, fall, or stay the same.
B
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In the basic closed-economy ISLM model, as the interest sensitivity of money demand increases, fiscal policy has ________ effect on output and monetary policy has ________ effect on output
A) less; less B) more; more C) more; less D) less; more
The above figure shows the reaction functions for two pizza shops in a small isolated down. The Stackelberg leader will produce
A) 25 pizzas. B) 50 pizzas. C) 66.7 pizzas. D) 100 pizzas.
Which of the following is FALSE?
a. The Robinson-Patman act is a part of the antitrust laws b. Under the Robinson-Patman act it is illegal to give a price discount on goods sold to another business c. Under the Robinson-Patman act, it is illegal to give a price discount on goods sold to final customers d. Under the Robinson-Patman act, the only discount allowed is the one based on difference in servicing costs of different groups
In the short run, a perfectly competitive firm's production decision aims to maximize profits at the production rate where P = MR = MC.
Answer the following statement true (T) or false (F)