An appreciation in the value of the U.S. dollar would
a. encourage foreigners to make more investments in the United States.
b. encourage U.S. consumers to purchase more foreign-produced goods.
c. increase the number of dollars that could be purchased with the euro.
d. discourage U.S. consumers from traveling abroad.
B
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When the price of summer tank tops falls and you buy more of it because it is relatively less expensive, this is called
a) The substitution effect b) The income effect c) The net effect of both the substitution effect and the income effect d) The equilibrium choice for hours worked.
The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is ________ the slope of the line between points B and C
A) greater than B) equal to C) less than D) unrelated to E) not comparable to
The cross elasticity of demand for pizza with respect to the price of a soda is
A) positive because the goods are complements. B) negative because the goods are complements. C) positive because the goods are substitutes. D) negative because the goods are substitutes.
Other things equal, the equation for the real interest rate indicates that:
a. as inflation increases, the real interest rate will rise. b. as inflation increases, the nominal interest rate will fall. c. as inflation decreases, real income will fall. d. as inflation decreases, the real interest rate will rise. e. as inflation changes, the real interest rate will not change.