The theory that changes in the exchange rate reflect only changes in the price levels of two countries is called

a. the floating exchange rate theory
b. the fixed exchange rate theory
c. the flexible exchange rate theory
d. purchasing power parity
e. the managed exchange rate theory


D

Economics

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If there is a recession, the Fed would most likely encourage banks to provide loans by:

A. buying government securities. B. raising the discount rate. C. selling government securities. D. raising the federal funds rate.

Economics

Given the information that follows, how much are your family business's (a) accounting profits? (b) Economic profits? Sales: $700,000; total costs: $450,000; return you could have earned elsewhere: $20,000; wages you and your family members could have earned doing the same work for another firm: $120,000.

What will be an ideal response?

Economics

The relationship between inputs and outputs is known as

A. marginal product. B. manufacturing. C. business. D. a production function.

Economics

Assume Congress holds a hearing on the impact of gasoline prices on the price of corn. Most likely, this hearing will be

A) a partial equilibrium analysis. B) a general equilibrium analysis. C) about consumer rather than producer surplus. D) an analysis of efficiency.

Economics