Suppose an item sells for $125 in the United States and for 62,500 pesos in Chile. According to the law of one price, the nominal exchange rate (pesos/dollar) should be ________
A) 31,313
B) either $125, or 62,500 pesos, but not both
C) 0.002
D) 500
D
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Suppose the marginal propensity to consume is 0.75 . If government purchases increase by $100 billion and the extra expenditure is financed with a net tax of $100 billion, by how much will output change?
a. -$400 billion b. $100 billion c. $400 billion d. $0 e. -$100 billion
Examples of assets that are included in household wealth would be
What will be an ideal response?
Average total cost is defined as:
A. total variable cost divided by quantity. B. quantity divided by total variable cost. C. the change in total variable cost divided by the change in quantity. D. total cost divided by quantity.
Which of the following is most likely to be a variable cost for an airline?
A. Insurance B. Property taxes C. Jet fuel D. The lease payment on the building where the airline’s headquarters are located.