We start with a 3 percent real interest rate in the United States and in Japan. Next, the real interest rate in Japan falls to 2 percent, and the U.S. real interest remains constant. As a result,
A) the yen will depreciate and the dollar will appreciate.
B) both the yen and the dollar will depreciate.
C) the yen will appreciate and the dollar will depreciate.
D) both the yen and the dollar will appreciate.
A
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A country enjoys a comparative advantage in the production of a good if that good can be produced at a lower cost in terms of other goods.
Answer the following statement true (T) or false (F)
Which of the following is not true of long run equilibrium under monopolistic competition? a. Price equals marginal cost
b. Price equals average cost. c. Price equals minimum average total cost. d. None of the above.
A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing
a. True b. False
You are a manager in a perfectly competitive market. The price is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q2. What level of output should you produce in the short run?
A. 10 B. 5 C. 15 D. 8