Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S. goods buys)?
a. an increase in the number of Kenyan shillings that can be purchased with a dollar
b. an increase in the price of U.S. goods
c. a decrease in the price in Kenyan shillings of Kenyan goods
d. All of the above are correct.
d
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The store of value does not require that money hold its value of time in terms of its purchasing power
Indicate whether the statement is true or false
Which of the following could be described as an aggregate demand-driven model of business cycles?
a. Keynesian model. b. monetarist model. c. New Keynesian model. d. classical model. e. a, b, and c.
Suppose the Christmas trees market is perfectly competitive. An owner is currently earning a profit of $1,000, the cost of producing and selling an additional Christmas tree is $25, the current market price is $20. The owner
A) should sell more trees. B) should not sell more trees. C) should advertise in the market to promote his sales. D) is not maximizing his profits.
To maximize profits, a monopolist produces the quantity by which of the following?
a. Marginal revenue equals average total cost. b. Price equals marginal revenue. c. Marginal revenue equals marginal cost. d. Price equals marginal cost.