The Big Mac index uses prices of a common item to predict long-run changes in exchange rates.
Answer the following statement true (T) or false (F)
True
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If the net public debt remains unchanged during a given period, but the gross public debt increases, then which of the following statements must be correct?
A) Government interagency borrowing must have decreased during the period. B) Foreign ownership of U.S. Treasury securities must have fallen during the period. C) Government interagency borrowing must have increased during the period. D) Foreign ownership of U.S. Treasury securities must have risen during the period.
Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the income effect associated with a decrease in the price of a textbook will result in
a. a decrease in the consumption of textbooks and a decrease in the consumption of Ramen noodles. b. a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles. c. an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles. d. an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
In what two ways does trade benefit consumers when firms are monopolistically competitive?
a. better quality products, increased information b. higher incomes, more dependable products d. lots of bells and whistles, higher wages d. lower prices, more variety
The school of engineering at a modern university would be a supporter of the new
A. consumption theory. B. growth theory. C. monetary theory. D. construction theory.