The theory of PPP suggests that if one country's price level falls relative to another's, its currency should
A) depreciate.
B) appreciate.
C) float.
D) do none of the above.
B
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In order for a Pigouvian tax to be efficient, the amount of revenue raised plus the economic value of the reduction in pollution must together be larger than the loss in consumer and producer surplus.
Answer the following statement true (T) or false (F)
In a change to immigration policy during 2012, "people younger than 30 who came to the United States before the age of 16, pose no criminal or security threat, and were successful students or served in the military can get a two-year deferral from
deportation", Homeland Security Secretary Janet Napolitano said, according to CNN, 06/16/2012. If many of these immigrants had previously been afraid to work, now as a result of being able to work legally A) both the short-run and long-run aggregate supply curves shift rightward. B) only the long-run aggregate supply curve shifts rightward. C) only the short-run aggregate supply curve shifts rightward. D) neither the short-run nor the long-run supply curve shift.
What are the three decisions that all firms must make?
What will be an ideal response?
International feedback effects ________________ the impact on the unemployment rate of __________________ monetary policy
A) dampen; only expansionary B) dampen; expansionary and contractionary C) amplify; only contractionary D) amplify; contractionary and expansionary