What effect does a depreciation of the dollar have on real GDP in the United States in the short run?
A) Real GDP will be unaffected by the depreciation of the dollar.
B) Real GDP will rise.
C) Real GDP will be unchanged, but nominal GDP will rise.
D) Real GDP will fall.
B
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Unlike an accountant, an economist measures costs on a(n) ________ basis
A) explicit B) replacement C) historical D) conservative
Under perfect competition, the demand curve facing a firm and the firm's marginal revenue curve are
a. vertical at the firm's chosen output level b. both vertical, but the demand curve is further to the right than the marginal revenue curve c. both vertical, but the marginal revenue curve is further to the right than the demand curve d. both horizontal at the level of the market price e. both horizontal, but the demand curve is above the marginal revenue curve
Which of the following is a difference between the income effect and the substitution effect?
a. The income effect refers to the way a change in income alters the buying power of an individual, while the substitution effect occurs when a good becomes cheaper and people seek alternatives. b. The income effect refers to the way a change in price alters the buying power of an individual, while the substitution effect occurs when a good becomes expensive and people seek alternatives. c. The income effect refers to the way a change in price alters the buying power of an individual, while the substitution effect occurs when the opportunity cost of a good increases and people seek alternatives. d. The income effect occurs when a good becomes expensive and people seek alternatives, while the substitution effect refers to the way a change in income alters the buying power of an individual.
Suppose a bank has $160,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $1,600,000. B. $160,000. C. $16,000. D. $1,600.