Under purchasing power parity (PPP), if U.S. monetary growth leads to a long run doubling of the U.S. price level, while Germany's price level remains constant, PPP predicts that the
A) long-run DM price of the dollar will be doubled.
B) long-run DM price of the dollar will be halved.
C) long-run DM price of the dollar will remain the same.
D) short-run DM price of the dollar will be halved.
E) short-run DM price of the dollar will be doubled.
B
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Use the following diagram to answer the next question. 
The diagram illustrates the pattern of
A. wage movements over time. B. business cycles. C. price level movements. D. economic growth patterns.
A new financial innovation results in people switching their funds from checking deposits to savings accounts. The quantity of M1 ________ and the quantity of M2 ________
A) decreases; decreases B) increases; decreases C) decreases; does not change D) decreases; increases
In the principal-agent problem, the principal is:
A. a person who entrusts someone with performing a task. B. a person who carries out a task on someone else's behalf. C. a person who is in charge of an educational system. D. a person who is the source of the problem.
Karl Marx's massive work, titled Das Kapital, was published in 1848
a. True b. False Indicate whether the statement is true or false