The expected rate of change in the nominal dollar/euro exchange rate is best described as
A) the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe expected inflation difference.
B) the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe real interest rate difference.
C) the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe expected inflation difference.
D) the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe real interest rate difference.
E) the expected rate of change in the real dollar/euro exchange rate plus the European expected inflation.
C
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When there is an excess quantity supplied
A) the market is in equilibrium. B) quantity demanded is greater than quantity supplied. C) quantity demanded is less than quantity supplied. D) prices will remain stable.
If the economy is at full employment, then an increase in government spending:
A. would simply crowd out private spending. B. would have too large an impact on real growth. C. would cause deflation, which would increase unemployment. D. is the right fiscal policy response.
A payment for a resource above the opportunity cost of the resource is
A. nominal rent. B. economic rent. C. real rent. D. social rent.
Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity?
A) 300 units B) 400 units C) 500 units D) 600 units