Booms or recessions in one country tend to be transmitted to other countries through international trade in goods and services.
Answer the following statement true (T) or false (F)
True
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If real money demand doubles while the nominal money supply is unchanged, what happens to the price level?
A) The price level increases by a factor of four. B) The price level doubles. C) The price level is unchanged. D) The price level falls by one-half.
The theory of PPP suggests that if one country's price level rises relative to another's, its currency should
A) depreciate in the long run. B) appreciate in the long run. C) depreciate in the short run. D) appreciate in the short run.
Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held fixed?
a. Unemployment and capital goods production. b. Number of resources and consumption goods production. c. Composition of the economy's output and number of resources. d. Capital and consumption goods production. e. Technology and number of resources.
Along a curved line, the slope at the maximum
A) is greater than zero.
B) is zero.
C) is less than zero.
D) may be greater than, less than, or equal to zero.