The budget deficit increases during wars and recessions
Indicate whether the statement is true or false
TRUE
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At full employment the unemployment rate equals the
A) cyclical unemployment rate. B) structural unemployment rate plus the frictional unemployment rate. C) structural unemployment rate plus the cyclical unemployment rate. D) structural unemployment rate.
The bid price for a bond is
A) the minimum price that you are allowed to bid for a bond that is being auctioned by the government. B) the maximum price that you are allowed to bid for a bond that is being auctioned by the government. C) the price that you will receive from a securities dealer if you sell the bond. D) the price that you must pay a securities dealer to purchase a bond.
Your U.S.-based company is selling parts to a company in Chile and the company will pay you 9.8 million pesos in 3 months. The current exchange rate is 490 pesos/US$. If the exchange rate at the time of payment is 510 pesos/US$
A) you earn additional profit. B) the Chilean company will end up paying more for the goods. C) the Chilean company will end up paying less for the goods. D) you earn less profit.
Which of the following is characteristic of a monopolistic competitor?
a. a standardized product b. the ability to influence price c. allocative efficiency d. a horizontal firm demand curve