Based on this figure, if the official value of krone is fixed at $0.09 per krone, then the Norwegian krone is ________ and the international reserves of Norway will ________ krone per period.
A. overvalued; decrease by 5,500
B. undervalued; increase by 5,500
C. overvalued; decrease by 2,000
D. undervalued; increase by 2,000
Answer: B
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Using Figure 1 below, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y3.
D. P2 and Y2.
Other things constant, as the price of a resource increases,
a. the quantity of the resource demanded falls. b. the quantity of the resource supplied falls. c. the price of the product the resource helps to produce falls. d. there is less of an incentive for users of the resource to find substitute resources.
Bubba is a shrimp fisherman who could earn $5,000 as a fishing tour guide. Instead, he is a full-time shrimp fisherman. In calculating the economic profit of his shrimp business, the $5,000 that Bubba gave up is counted as part of the shrimp business's
a. total revenue. b. explicit costs. c. implicit costs. d. marginal costs.
A one-year Treasury bill that sells for $952.38 and has a face value of $1,000 has an annual yield of
A) 10 percent. B) 8 percent. C) 6 percent. D) 5 percent.