Suppose a 10-mile taxi ride costs £6.50 in London and $10.00 in Los Angeles. If the exchange rate is £1 = $1.70 purchasing power parity holds
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is true of trademarks?
A) If a firm is granted a trademark, then no other firms can legally produce similar products for a given period of time. B) A successful trademark is one that allows consumers to immediately identify the source or producer of the product. C) If a firm is granted a trademark, then no other firms can legally sell in the same geographic area for a given period of time. D) A successful trademark is one that becomes a generic name for a product, for example, "Xerox" has become a generic term for making photocopies.
Currency crises may result from
A) central bank balance sheets with higher liabilities than assets. B) political upheaval leading to lowering exports. C) a reconfiguration of central bank balance sheets. D) speculative attacks on the currency or central banks purchasing excessive amounts of government bonds. E) depreciation of foreign reserves.
The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above.
If $30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:
a. $30 billion. b. $90 billion. c. $100 billion. d. $210 billion. e. $300 billion.