Suppose there are only two countries in the world, Mexico and the United States. In the foreign exchange market, it follows that the
A) demand for pesos is linked to the demand for dollars.
B) demand for pesos is linked to the supply of pesos.
C) supply of pesos is linked to the demand for dollars
D) supply of pesos is linked to the supply of dollars.
E) none of the above
C
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Liabilities are:
A. saving minus investment. B. anything of value one owns. C. the debts one owes. D. current income minus spending on current needs.
If a country begins to import a good,
a. it has a comparative advantage in producing that good b. it has a comparative advantage in consuming that good c. domestic consumers are made better off d. domestic producers are made better off e. both domestic consumers and domestic producers are harmed
The short-run Phillips curve shifts around because of changes in:
A. expectations of employment. B. expectations of inflation. C. the money supply. D. expectations of real income.
Since the end of 2008, there has been a zero interest rate bound in the U.S. economy.
Answer the following statement true (T) or false (F)