The dollar is said to depreciate against the euro if
a. the exchange rate falls. Other things the same, it will cost fewer euros to buy U.S. goods.
b. the exchange rate falls. Other things the same, it will cost more euros to buy U.S. goods.
c. the exchange rate rises. Other things the same, it will cost fewer euros to buy U.S. goods.
d. the exchange rate rises. Other things the same, it will cost more euros to buy U.S. goods.
a
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The snob effect corresponds best to a
A) negative network externality. B) Giffen good. C) positive network externality. D) bandwagon effect.
Why is it impossible to make everyone better off in the long run by imposing import restrictions?
What will be an ideal response?
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
A cartel is
A. always successful in raising profits. B. a formal agreement among firms to collude. C. a form of covert collusion. D. legal in the United States.