If the Canadian nominal exchange rate does not change, but prices rise faster abroad than in Canada, then the Canadian real exchange rate
a. does not change.
b. rises.
c. declines.
d. None of the above is necessarily correct.
c
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A horizontal merger
a. combines similar firms that serve separate markets. b. combines firms that produce similar products. c. enables a company to control each stage of the production process: from raw materials to the final marketing of the product. d. enables similar firms to form a cartel.
If autonomous expenditures increased by $10 billion, what is the change in aggregate demand at a given price level if the MPC to consume is 0.8?
a. increase by $50 billion b. increase by $100 billion c. decrease by $100 billion d. decrease by $10 billion
Figure 2.1Refer to Figure 2.1. If you are producing 600 tons of agricultural products per year, what is the maximum amount of manufactured products you can produce per year?
A. 300 tons B. 500 tons C. 600 tons D. 700 tons
The law of diminishing marginal product indicates that
A. total product will eventually decrease. B. average product will eventually decrease. C. resources are inefficient. D. marginal product will eventually decrease.