The law of one price states that if the costs of transportation are small, then the price of the same good in different countries should be roughly the same.
Answer the following statement true (T) or false (F)
True
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A price ceiling ________
A) makes it illegal to charge a higher price than the specified price B) is more effective when it is higher C) is necessary to maintain market equilibrium D) occurs in housing markets only
Assets whose returns have a high positive correlation are considered:
a. highly risky compared with those whose returns have lower or negative correlations.. b. completely risk free. c. less risky compared to those which have a low positive correlation. d. partially risky.
A domestic currency devaluation would generally lead to:
(a) Increased exports in the domestic economy. (b) Increased imports from a foreign economy. (c) Increase in government spending. (d) None of the above.
The original Phillips curve depicted the relationship between
A) price inflation and unemployment. B) price inflation and employment. C) wage inflation and unemployment. D) wage inflation and employment.