If the exchange rate changes from $2.00 = 1 euro to $1.98 = 1 euro then
A) the dollar has depreciated.
B) the dollar has appreciated.
C) the euro has appreciated.
D) the euro has stayed constant in value.
Answer: B
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Use the aggregate expenditures model and the following values to answer the next question. AMPCIGT$7500.5$1,000$1,000$500Determine equilibrium consumption for this economy.
A. $3,500 B. $3,250 C. $3,000 D. $2,500
A likely example of substitute goods for most people would be
a. peanut butter and jelly. b. tennis balls and tennis rackets. c. televisions and subscriptions to cable television services. d. pencils and pens.
There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
A. the prices of goods were artificially held down by price controls. B. black markets were legal during the war. C. goods were not subject to price controls. D. gasoline rationing greatly restricted civilians from driving to stores.
As it relates to owners and managers, the principal-agent problem results from the:
A. separation of corporate ownership and control. B. double taxation of corporate profit. C. limited liability of corporate owners. D. differing interests of corporate stockholders and bondholders.