When the official dollar price of a foreign currency is set below its equilibrium level, the dollar
A) has been appreciated.
B) is overvalued.
C) is undervalued.
D) is devalued.
E) is revalued.
B
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At a price level of 100, John has savings equal to $20,000. If the price level increases to 130, the buying power of John's savings is approximately
A) $26,000. B) $12,780. C) $30,000. D) $20,000. E) $15,400.
The state of Georgia offers free college tuition to high school students with a "B" average. In 2007, the state raised the requirement so that fewer students qualified for the scholarship
At the same time, Georgia increased state spending on health care. Suppose that college education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes A) are example of a tradeoff. B) are an example of incentives. C) will cause a shift out of the PPF. D) will cause a shift in the of the PPF.
Describe the effects of contractionary fiscal policy by the domestic government on output, the real interest rate, and net exports in both the domestic and foreign country, using a Keynesian model
What will be an ideal response?
Ad valorem taxes
A) are not used in the United States. B) are assessed as a percentage of a good's price. C) are based on income levels. D) are applied only to imports.