When the expected dollar-euro exchange rate rises, the domestic dollar return curve shifts:
a. in.
b. out.
c. not at all.
d. Not enough information is provided to answer the question.
Ans: c. not at all.
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Consider the budget line in the above figure. If the price of a magazine is $4, then the price of a hamburger is
A) $1.75. B) $3.00. C) $4.00. D) $5.33.
Fiscal policy involves ________
A) taxes and government spending B) setting interest rates C) controlling the amount of money in the economy D) all of the above E) none of the above
If a policy change by the Fed is ________, then the change in policy has exactly the same result on the economy as it does when we assume that households and firms have adaptive expectations
A) unannounced or not credible B) unannounced or credible C) announced or credible D) announced or not credible
Lipitor, with few substitutes, should have an own-price elasticity of demand that is:
a. Relative elastic b. Relatively inelastic c. Perfectly inelastic d. Perfectly elastic