The logic of the exchange-rate effect begins with a change in the price level changing the interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following does not describe a characteristic of short-term economic fluctuations?
A. Expansions and recessions are irregular in length and severity. B. Durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries. C. Expansions and recessions are felt throughout the economy. D. The unemployment rate rises during recessions.
Refer to Scenario 5.9. Given that the probability of a positive faculty response is 75%, Torrid Texts' expected profit under complete information would be
A) $23.25 million. B) $45 million. C) $45.25 million. D) $45.75 million. E) $60 million.
The substitution by consumers of one good for another because of relative price changes is:
A. captured by the CPI and causes the CPI to underestimate the cost-of-living changes. B. captured by the CPI and causes the CPI to overestimate the cost-of-living changes. C. not captured by the CPI and causes the CPI to underestimate the cost-of-living changes. D. not captured by the CPI and causes the CPI to overestimate the cost-of-living changes.
Fiat money is:
A. money created by rule. B. money used for the exchange of large commodities. C. any form of money that is more readily accepted than commodity-backed money. D. any form of money that can be legally exchanged into a fixed amount of an underlying commodity.