An increase in inflation in the United States relative to the rate in France would make:
a. U.S. goods relatively less expensive in the United States and in France.
b. French goods relatively less expensive in the United States and U.S. goods relatively more expensive in France.
c. French goods relatively more expensive in the United States and in France.
d. French goods relatively more expensive in the United States and U.S. goods relatively less expensive in France.
b
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The supply curve of a good is highly elastic when
A) additional resources can be attracted into its production by the prospect of a slightly higher reward. B) its marginal supply cost is highly sensitive to changes in demand. C) marginal cost is very low. D) marginal cost rises steeply as the quantity supplied increases. E) the demand for the good is greater than the supply.
Most collective bargaining agreements in the United States are reached
a. only after binding arbitration b. only after a strike c. without a strike d. only after a strike lasting at least three weeks e. only after government intervention to avoid a strike
At each level of income, net taxes reduce disposable income, thereby reducing consumption spending
a. True b. False
The U.S. government need never default on its debt because
A. it can easily nationalize banks, who own all the debt, and then owe it to itself. B. it can raise the funds it needs to repay by taxation, and it can print money to repay. C. it owes the debt to itself, and it can always ignore a demand for repayment. D. it can simply reduce spending enough to generate funds to repay its debt.