Devaluation of a currency is
a. reduction in its domestic value due to inflation
b. reduction in its international value due to changes in supply and demand
c. reduction in its international value due to government decree
d. reduction in the value of other currencies
e. all of the above
C
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Answer the question using the table. Figures are in billions of dollars. The equilibrium interest rate and quantity of loanable funds demanded and supplied in this market will be
A. 12 percent and $22 billion. B. 14 percent and $26 billion. C. 10 percent and $18 billion.
With respect to labor supply, the substitution effect means a
A) person increases his or her hours of labor in response to a higher wage rate. B) person decreases his or her hours of labor in response to a higher wage rate. C) person substitutes high paying work for low paying work. D) firm substitutes capital for labor.
A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by
A) taking the height of the marginal revenue curve at output rate Q*. B) taking the height of the marginal cost curve at output rate Q*. C) taking the height of the demand curve at output rate Q*. D) setting price equal to marginal cost.
Falling GDP leads to higher transfer payments and lower tax receipts.
Answer the following statement true (T) or false (F)