Assume the asset market is always in equilibrium. Therefore a fall in Y would result in
A) higher inflation abroad.
B) a decreased demand for domestic products.
C) a contraction of the money supply.
D) a depreciation of the home currency.
E) an appreciation of the home currency.
D
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The above figure shows the marginal benefit and marginal cost curves for a public good. The efficient quantity is
A) A. B) B. C) C. D) zero units supplied.
Compared to a monopolistic competitor, a monopolist faces
A) a more elastic demand curve. B) a more inelastic demand curve. C) a demand curve that has a price elasticity coefficient of zero. D) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices.
What can explain the failure of relative PPP to hold in reality?
What will be an ideal response?
The concept of Nash equilibrium states that
A) no firm can improve their outcome holding the other firm's actions constant. B) all firms are earning the highest possible profit. C) firms make alternating output decisions. D) None of the above