When the value of the dollar has decreased,
A. the cost of living has increased.
B. deflation has occurred.
C. your real income has increased.
D. your purchasing power has increased.
A. the cost of living has increased.
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Hong Kong is an example of an economy that
A) does not experience economic growth because it is not a democracy. B) experiences economic growth in spite of the fact that is lacks democratic freedom. C) grows more slowly than other Asian countries because property rights are not valued. D) needs to promote investment so that economic growth can occur. E) lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.
If country A exports good X to country B and country B exports good Y to country A, it is most likely that
A) A has an absolute advantage in the production of good X. B) B has a comparative advantage in the production of good Y. C) the opportunity cost of domestic production of good Y for country A is lowered with trade. D) B is producing less of good Y than in the no-trade case.
If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run,
a. price will rise. b. the firm's per-unit costs will increase. c. the firm's per-unit costs will fall. d. the market price will return to its initial position.
Discuss some of the potential benefits and costs of the adoption of the Euro
What will be an ideal response?