Suppose the dollar—euro exchange rate falls. Then
A) French firms will import more from the United States into France.
B) U.S. firms will export less to France.
C) the dollar is less valuable relative to the euro.
D) the euro is more valuable relative to the dollar.
B
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Suppose a pickpocket steals your $20 bill and spends all of it on pizza and beer. What happens to GDP?
A) GDP increases by twenty dollars. B) GDP decreases by twenty dollars. C) Because the positive balances out the negative, GDP remains unchanged. D) GDP decreases because somebody has clearly been made worse off.
Frictional unemployment refers to:
a. people who spend relatively long periods out of work. b. unemployment related to the ups and downs of the business cycle. c. people who are out of work and have no job skills. d. short periods of unemployment needed to match jobs and job seekers.
Which of the following bond buyers did not buy the bond that best met his or her objective?
a. Jackie wanted a bond with a high interest rate and was willing to take a lot of risk. She purchased a junk bond. b. Andrew wanted a bond that would allow him to legally avoid paying federal income taxes. He purchased a municipal bond. c. Suzy wanted to purchase a bond whose seller was unlikely to default. She purchased a bond that Standards and Poor's rated a low credit risk. d. Cecilia held long-term bonds rather than short-term bonds to avoid risk.
GDP cannot be used for international comparisons because
A. countries differ in the share of economic activity done in organized markets. B. countries are similar in the skills of the labor force. C. countries differ in population statistics. D. countries differ in political structure.