Assuming purchasing-power parity holds and that over a period of five years the dollar had appreciated relative to the currency of Country X, what would explain the appreciation of the dollar?
Money growth, and so inflation, was higher in Country X than in the U.S.
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An optimal choice can be characterized as a decision made by someone who is satisficing.
Answer the following statement true (T) or false (F)
A collusion occurs when firms act together to reduce output and keep prices high
a. True b. False Indicate whether the statement is true or false
A consumer is maximizing utility when
A. the consumer has spent all of his income. B. the slope of the budget constraint has reached -1. C. diminishing marginal utility has set in. D. the slope of the budget constraint equals the marginal rate of substitution.
Which of the following sequence of events follows an expansionary fiscal policy?
A) AE? Y? Md? r? I? AE?. B) AE? Y? Md? r? I? AE?. C) AE? Y? Md? r? I? AE?. D) AE? Y? Md? r? I? AE?.