In most countries today, many goods and services consumed are imported from abroad, and many goods and services produced are exported to foreign customers
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that Dianne Lindsay spends all her income on two goods, A and B, in a manner in which their marginal utility to price ratios are equal, i.e., MUa/Pa = MUb/Pb. If at that time the price of A is higher than the price of B, then she
a. should increase her consumption of A and decrease her consumption of B because the marginal utility of A is higher b. is already maximizing her total utility and should make no change c. should increase the consumption of B and decrease the consumption of A because the price of B is lower d. should increase the consumption of both A and B since the ratios are equal e. has made an irrational choice
A depreciation of the U.S. dollar in the foreign exchange market lowers U.S. Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
A rise in the real exchange rate represents an increase in the purchasing power of the home currency
Indicate whether the statement is true or false
How can the influence of a third variable be shown on a two-dimensional graph?
A) by allowing the relationship to be nonlinear B) by allowing the position of the relationship line or curve to shift on the graph C) by drawing a third axis coming out of the two axes D) by super-imposing the third variable on the two-dimensional graph