Which of the following holds true, if goods sell for the same price worldwide when converted to a common currency?
a. A high rate of inflation exists.
b. A fixed exchange-rate system exists.
c. Purchasing power parity exists.
d. The foreign exchange market is in equilibrium.
e. Arbitrage opportunities exist.
c
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A decrease in demand will cause a(n)
a. increase in supply b. decrease in supply c. increase in quantity supplied d. increase in equilibrium price e. decrease in equilibrium price
To stabilize real GDP, the Fed must increase the money supply in response to a
a. positive demand shock b. low level of unemployment c. sudden upsurge in inflation d. rise in the interest rate e. negative demand shock
Karl Marx said all of the following, except that
A. in the long run, capitalism would collapse. B. capitalists and workers generally had the same economic interests. C. one's social consciousness was determined by one's relationship to the means of production. D. whomever controlled a society's capital controlled that society.
By an "increase in demand," economists mean that:
A. product price has fallen so consumers move down to a new point on the demand curve. B. the quantity demanded at each price in a set of prices is greater. C. the quantity demanded at each price in a set of prices is smaller. D. a leftward shift of the demand curve has occurred.