An increase in the value of a domestic currency in terms of other currencies is known as
A. a discount rate.
B. an appreciation.
C. a flexible exchange rate.
D. a depreciation.
Answer: B
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Investment in capital goods is one way to increase the standard of living in the future. Investment in capital goods, however, means that we must forgo consumption today. One of the trade-offs facing an economy is the balance of consumption today with that of the future. The following table shows such a trade-off. With this information we know that the opportunity cost of which of the following is the greatest?Current consumptionFuture consumption800100750260650340600380550400
A. Increasing current consumption from 750 to 800 B. Increasing current consumption from 600 to 650 C. Increasing current consumption from 650 to 750 D. Increasing current consumption from 550 to 600
The steel industry is an example of a homogeneous oligopoly.
Answer the following statement true (T) or false (F)
In 2011, advertising expenditures in the United States were:
A. 10 to 12 percent of GDP. B. about $137 billion. C. about $103 billion. D. about $498 billion.
If the nominal exchange rate rises 5%, domestic inflation is 2%, and foreign inflation is 3%, what is the percent change in the real exchange rate?
A) 8% B) 6% C) 4% D) 2%