All else equal, if Canada raises its interest rates,
A) the dollar depreciates.
B) the U.S. demand for Canadian dollars decreases.
C) the Canadian supply of Canadian dollars increases.
D) the Canadian dollar will depreciate.
B
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The fact that developed countries have strong, widely attended university systems indicates that
(a) university expansion should be a development priority. (b) universities teach skills used on the job. (c) developing countries place too much stress on agriculture. (d) none of the above.
The Price Elasticity of Demand is a negative number this means:
a) Demand is price elastic. b) Demand is price inelastic. c) The demand curve is downward sloping. d) An increase in income will reduce the quantity demanded.
Under monopolistic competition, a long-run equilibrium exists when price equals:
A. marginal revenue. B. minimum average total cost. C. average total cost. D. marginal cost.
Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. If Leo only values income and not how the income was acquired, then he must earn ________ to be as well off as when he earns nothing and receives benefits.
A. $350 B. $450 C. $225 D. $300