A currency depreciation in the foreign exchange market will ________.
A. encourage foreign travel by the citizens of the country whose currency has depreciated
B. discourage exports from the country whose currency has depreciated
C. discourage imports into the country whose currency has depreciated
D. encourage imports into the country whose currency has depreciated
Answer: C
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The Cobb-Douglas production function F(L,K) = AL?K? will exhibit decreasing returns to scale when:
A. ? + ? = 1. B. ? + ? < 1. C. ? + ? > 1. D. ? + ? = 0.
If prices have been rising since the base year for GDP (which was years ago), which will be smaller?
A. nominal GDP B. real GDP C. cannot say
Economists believed that the U.S. economy had a (n) ____ in 2006 and 2007.
A. mild recession B. small recessionary gap C. small inflationary gap D. deflationary gap
The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus.
Answer the following statement true (T) or false (F)