The proponents of fixed exchange rates argue that flexible exchange rates
A) hamper international trade because of uncertainty over what the exchange rate will be.
B) force a nation to use its domestic macroeconomic policies to maintain an exchange rate.
C) lead to trade protectionism.
D) a and b
E) a, b, and c
A
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The division of the burden of a sales or excise tax on demanders and suppliers:
a. Is always equal. b. Is always higher for demanders. c. Is always higher for suppliers. d. Depends on the shapes of the demand and supply curves.
The following table shows the aggregate supply and demand data for a country.
What is the equilibrium price level?
a. 200
b. 400
c. 500
d. 800
Which person has the highest opportunity cost of obtaining a college degree (assuming that attending college requires giving up his or her current position)?
a. Bill, who is unemployed. b. Jane, who is an unwed mother and earns $15,000 a year. c. Larry, who is a technician in the Navy earning $18,000 a year with free food and housing. d. Mary, who has a job earning $60,000 a year as a computer programmer. e. Unable to determine from the data given.
Discuss the meaning of the statement: “Human history teaches us that economic growth springs from better recipes, not just more cooking.”
What will be an ideal response?