In the classical view, flexible wage rates would assure
A. low inflation.
B. high secular inflation rates.
C. high rates of unemployment.
D. full employment.
Answer: D
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What real world complications keep purchasing power parity from being a complete explanation of exchange rate fluctuations in the long run. Explain
What will be an ideal response?
Fortunade Corporation stock has a price of $100 per share, a dividend of $1.60 per share, and retained earnings of $2.00 per share. The dividend yield on this stock is
a. 2.8 percent. b. 2.0 percent. c. 1.6 percent. d. 0.4 percent.
Employing all its available resources nation Alpha can produce either 800 units of chemicals or 1,600 units of clothing. Nation Beta can produce either 200 units of chemicals or 800 units of clothing. Which of the following statements is true?
A. Alpha has a comparative advantage in producing chemicals. B. Beta is the high-cost producer of clothing. C. Beta has a comparative advantage in producing chemicals. D. Alpha has a comparative advantage in producing clothing.
In the expanded circular flow diagram, the rest of the world interacts directly with:
A. households. B. firms. C. product markets. D. factor markets.