According to purchasing-power parity which of the following would happen if a country raised its money supply growth rate?
a. its nominal exchange rate would fall
b. its real exchange rate would fall
c. its real net exports would rise
d. All of the above would happen.
a
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Answer the following statement(s) true (T) or false (F)
1. The amount of output produced by two firms in a Cournot oligopoly setting is greater than that produced by a monopoly, but smaller than that which would be produced if the market were perfectly competitive. 2. According to the Bertrand model, price and output is higher under oligopoly than under competition. 3. A firm has monopoly power when it is the single seller of a good or service. 4. If a monopoly desires to raise its profits, it can simply raise the price it charges. 5. We know that the producer's surplus accruing to a simple monopoly firm must be greater than operating in a competitive market, else firms would not act as monopolists.
The measure of saving in the National Income and Product Accounts includes
A) capital gains on stocks, bonds, houses, and other assets. B) purchases of consumer durables. C) nominal interest payments which households receive from corporations. D) all of the above.
If demand decreases and supply increases, price will
a. always increase b. always decrease c. increase only if supply increases more than demand decreases d. increase only if supply increases less than demand decreases e. decrease only if supply increases more than demand decreases
Which of the following would result from a tariff?
a. An increase in government budget deficit b. An increase in domestic production c. A greater volume of international trade d. Increased domestic consumption e. Decrease in prices of the imported goods