If the price of butter increases 5 percent and the amount of margarine purchased increases 25 percent, then the cross-price elasticity of these goods is:
A. 5.
B. 5.
C. 0.2.
D. 0.2.
A. 5.
B. 5.
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If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the
A) demand for dollars decreases. B) quantity of dollars demanded decreases. C) quantity of dollars demanded increases. D) demand for dollars increases. E) demand for dollars does not change and the quantity of dollars demanded also does not change.
Demand for a particular type of apple is always strong in the beginning of fall. As a result, grocery stores typically face a _____ of these apples, causing them to _____ their price for the good
a. shortage; raise b. surplus; raise c. shortage; reduce d. surplus; reduce
Return on investment is calculated as:
a) the amount invested divided by earnings. b) the amount invested divided by the interest rate. c) earnings divided by the amount invested. d) earnings divided by the interest rate.
The year chosen for the weights in a fixed weight procedure is known as the
A. bilateral year. B. base year. C. nominal year. D. fiscal year.