A rise in the domestic interest rate leads to capital
a. outflows and exchange rate appreciation.
b. outflows and exchange rate depreciation.
c. inflows and exchange rate depreciation.
d. inflows and exchange rate appreciation.
d
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A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost is the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5
If the grower practices group price discrimination, which country's consumers will pay a higher price and by how much?
The value and cost of goods are easiest to determine when the goods are
a. private goods. b. public goods. c. common resources. d. club goods.
One of the timing problems with fiscal policy is an "operational lag" that occurs between the:
A. time the need for fiscal action is recognized and the time that action is actually taken. B. beginning of a recession and the time that it is recognized that the event is occurring. C. time that fiscal action has an impact on output, employment, and the price level and the time by which it can be determined if the policy is effective. D. time that fiscal action is taken and the time that action has an impact on output, employment, and the price level.
Availability of Substitutes
What will be an ideal response?