Suppose there is a real depreciation of the dollar. Which of the following may have occurred?
A) foreign currency has become more expensive in dollars.
B) foreign goods have become more expensive to Americans.
C) the foreign price level has increased relative to the U.S. price level.
D) all of the above
E) none of the above
D
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Which of the following is true about inflation?
a. Inflation promotes social harmony by uniting people against the government. b. Inflation is more damaging if it is anticipated. c. Accurate anticipation of inflation is possible for everyone who is well informed about economic events. d. Those who lend money at a rate below the rate of inflation suffer economic losses. e. If people accurately anticipate inflation, their actions will prevent it.
If a consumer is choosing the bundle of goods that maximizes utility subject to a budget constraint, then
A. the rate at which income affects the utility-maximizing choice is equal for all goods. B. the ratio of marginal utility to price is equal for all goods. C. the rate at which the consumer is willing to substitute between goods is equal to the market rate of exchange. D. both b and c E. all of the above
Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Both Harry and Sally would like to meet each other but are shy about asking the other out on a date. Harry StarbucksDunkin DonutsSally StarbucksH: 1, S: 1H: 0, S: 0 Dunkin DonutsH: 0, S: 0H: 1, S: 1If Harry and Sally go to the coffee shop every day, what is Harry's best strategy?
A. Stay at home. B. Randomly choose between the two shops and hope Sally will end up there too. C. Harry has no best strategy. D. Choose one shop to go to and keep going to it.
During a(n) ________ the demand for money decreases because ________
A) recession; the price level rises B) recession; real GDP decreases C) equilibrium; real GDP decreases D) recession; nominal GDP increases E) expansion; real GDP decreases