In terms of aggregate supply, the difference between the long run and the short run is that in the long run:
A. the price level is variable.
B. employment is variable.
C. real output is variable.
D. nominal wages and other input prices are fully responsive to price-level changes.
D. nominal wages and other input prices are fully responsive to price-level changes.
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Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual interest yield while the exchange rate is MXP 10 per dollar. What is the dollar return from the bond if the exchange rate at the end of the year is MXP 11 per dollar?
a. 9.1% b. 10.0% c. 18.2% d. 20.0% e. 32.0%
What are the two approaches followed by the U.S. government to ease the burden on the victims of free trade?
Which of the following is not a typical customer in the retail market for foreign exchange?
a. A small company b. A tourist c. A central bank d. An individual investor e. All of the above are usually retail customers in the foreign exchange market.
The data in the table show the marginal costs and marginal benefits to a city for five different levels of pollution control.Quantity of Pollution AbatementMarginal CostMarginal Benefit900 tons$400,000$100,000800 tons300,000150,000700 tons200,000200,000600 tons100,000250,000500 tons50,000300,000Refer to the above table. If the marginal benefit of pollution abatement increased by $150,000 at each level because of the community's newfound desire to attract cleaner industry, then the optimal level of pollution abatement in tons would be:
A. 600. B. 700. C. 800. D. 900.