Leveraging can encourage herding behavior.
Answer the following statement true (T) or false (F)
True
When people around you see how much you are earning, they also want to profit. Everyone buys more stocks and this enormously increases the risk that society is taking.
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Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8,
A) the prices of U.S. goods and services have increased by 53% relative to France. B) the prices of U.S. goods and services have decreased by 16% relative to France. C) the prices of U.S. goods and services have increased by 20% relative to France. D) the prices of U.S. goods and services have increased by 3% relative to France.
If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will
A) increase consumption by $7,500. B) decrease consumption by $2,500. C) increase consumption by $2,500. D) decrease consumption by $7,500.
According to classical economists, when aggregate demand decreases
A) unemployment is reduced, the price level increases, and equilibrium real GDP is reached. B) unemployment is reduced, the price level decreases, and equilibrium real GDP is reached. C) unemployment temporarily increases, the price level increases, and equilibrium real GDP is reached. D) unemployment temporarily increases, the price level decreases, and equilibrium real GDP is reached.
After graduating with a degree in kinesiology, Jem worked at the only physical therapy clinic in her small town even though the wage was low. In school, she had hoped to work for a professional sports team or an Olympic training center, but to do so she would have to move, and she had family reasons for staying. Jem’s story illustrates what type of labor market?
a. monopoly b. competitive c. monopsony d. equilibrium