The real and nominal exchange rates differ in the sense that:
A. the nominal exchange rate is adjusted for price differences between countries and the real is not.
B. the nominal exchange rate does not reflect differences in purchasing power between currencies.
C. nominal exchange rates are fixed but real rates are flexible.
D. the real exchange rate does not express differences in the purchasing power of a currency.
Answer: B
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The short run is a period of time:
A. in which a firm uses at least one fixed input. B. that is long enough to permit changes in the firm's plant size. C. in which production occurs within one year. D. in which production occurs within six months.
Refer to the data. The marginal product of the sixth worker is:
Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed.
A. 180 units of output.
B. 30 units of output.
C. 15 units of output.
D. negative.
Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
It is necessary for the Federal Reserve to regulate the money supply because
a. banks tend to act in a counter-cyclical manner with regard to the money supply. b. banks are not profit-oriented, and tend to be unresponsive to the needs of business. c. left to itself, the banking system will create a gyrating money supply that will be destabilizing. d. left to itself, the banking system will not be able to increase or decrease the money supply.