A cross-price elasticity value that is positive will indicate goods that are substitutes.
a. true
b. false
Answer: a. true
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The long-run Phillips curve shows the relationship between the ________ and the ________ when there is no ________ unemployment
A) inflation rate; employment rate; seasonal B) inflation rate; unemployment rate; cyclical C) inflation rate; unemployment rate; structural D) nominal interest rate; real interest rate; frictional E) nominal interest rate; unemployment rate; cyclical
Farmers as a group generally prefer bad weather to good weather because bad weather shifts the demand curve for their product rightward and raises the price of their product
Indicate whether the statement is true or false
When the nominal exchange rate changes from 4 francs per dollar to 6 francs per dollar, the dollar has:
A. appreciated. B. become undervalued. C. depreciated. D. become overvalued.
The capital account of the balance of payments consists of
A. the long-term transactions that we conduct with foreigners. B. all the goods and services produced during the current year, which we buy from or sell to foreigners. C. the interest, dividends, and profits that the U.S. collected from foreign investments less what U.S. firms paid foreign investors. D. None of these statements are true.