Suppose we were analyzing the Turkish lira per euro foreign exchange market. If Turkey's real GDP falls relative to the Euro-Area and nothing else changes, then the:
a. The supply of euros in the foreign exchange market rises, and the euro depreciates.
b. The demand for euros in the foreign exchange market rises, and the euro appreciates.
c. The demand for euros in the foreign exchange market falls, and the euro depreciates.
d. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market falls, causing the euro to rise in value.
e. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing the euro to fall in value.
.C
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The electric power company in a city increased its prices by 15% this year. Since the demand for electricity is a(n) ________ demand in the short run, the equilibrium price will ________.
A. inelastic; greatly increase B. elastic; decrease C. inelastic; decrease
Excess reserves are important to a banker because
A. if they are not maintained, banking regulators may shut the bank down. B. they are the profits that are divided among the bank's owners. C. they represent the funds available to use to acquire income-producing assets such as loans and securities. D. they indicate profitable banking practices.
The following table lists the basket of goods in the Consumer Price Index for the nation of Astro (assume 2014 is the base year).?2014 Quantity2014 Price2015 Quantity2015 Price2016 Quantity2016 PriceSunglasses8$9.0010$11.007$10.00Toothpaste15 3.0018 4.0015 4.00Ferrets6 12.004 15.009 18.00
Using the information in Table 12.2, the Astro Consumer Price Index for 2014 is:
A. 24. B. 100. C. 124. D. 189.
Demand for one item goes down when the price of another item goes up. These items must be
A. substitutes. B. inferior goods. C. normal goods. D. complements.