When the U.S. interest rate rises, the demand for U.S. dollars ________ and the exchange rate ________
A) increases; falls
B) does not change; rises
C) increases; rises
D) decreases; falls
E) decreases; rises
C
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Discuss the second welfare theorem. How can societies use competitive markets to achieve both efficiency and equity?
What will be an ideal response?
Based on the graph showing a reduction in the growth of the money supply, real wages initially rise because the decrease in inflation rate is ______.
a. too small
b. too slow
c. expected
d. unanticipated
Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50¢ per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75¢ per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
A. 100. B. 115. C. 126. D. 130.
Residential structures and inventories are examples of tangible capital.
Answer the following statement true (T) or false (F)