As the dollar appreciates, which of the following is most likely to occur?
a. More Americans will travel abroad.
b. American imports will fall.
c. More foreigners will visit the United States.
d. American firms will reduce their investments abroad.
A
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The level of reserves in the banking system is determined by
A) the Federal Open Market Committee. B) the Treasury Department. C) bond dealers. D) the American Banking Association.
A perfectly competitive firm will maximize profits by choosing an output level where
A. Price equals total cost. B. Price is greater than total cost. C. Price equals marginal cost. D. Price is greater than marginal cost.
Refer to Scenario 7.3 below to answer the question(s) that follow. SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000. Refer to Scenario 7.3. Your annual economic costs are
A. $0. B. $50,000. C. $60,000. D. $110,000.
In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is
A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.