If the dollar appreciates with respect to the euro, this means that
A. a European vacation for an American will be more expensive.
B. it takes fewer dollars to buy the same amount of euros.
C. it takes more dollars to buy the same amount of euros.
D. it takes the same number of dollars to buy the same number of euros.
B. it takes fewer dollars to buy the same amount of euros.
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Define the following terms carefully: (a) Full employment (b) Purchasing power of money (c) Real wage rate (d) Relative price
You hold currency from a foreign country. If that country has a higher rate of inflation than the United States, then over time the foreign currency will buy
a. more goods in that country and buy more dollars. b. more goods in that country but buy fewer dollars. c. fewer goods in that country but buy more dollars. d. fewer goods in that country and buy fewer dollars.
In which of the following groups are ALL of the elements considered barriers to entry to an oligopolistic market?
a. economies of scale; perfect competition; high start-up costs b. high levels of competition; high advertising costs; legal concerns c. high number of competitors; low start-up costs; legal concerns d. economies of scale; high start-up costs; legal concerns
An increase in government spending without any increase in taxes
A. does not increase aggregate demand. B. causes investment spending to increase. C. requires additional government borrowing. D. would effectively eliminate an inflationary gap.