Suppose that prices in the United States rise relative to prices in Japan. We expect that
A) the dollar will appreciate and the yen will depreciate.
B) the dollar will depreciate and the yen will appreciate.
C) both the dollar and the yen will appreciate.
D) both the dollar and the yen will depreciate.
B
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In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically are incentivized to run their division efficiently
Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts $50 billion to the left. The government wants to change its spending to offset this decrease in demand. The MPC is 0.80 . Suppose the effect on aggregate demand from a change in taxes is 4/5 the size of the change from government expenditures. There is no crowding out and no accelerator effect. What should
the government do if it wants to offset the decrease in aggregate demand? a. Raise both taxes and expenditures by $5.56 billion dollars. b. Raise taxes by $40 billion dollars and increase expenditures by $50 billion dollars. c. Reduce taxes by $10 billion dollars and increase expenditures by $10 billion dollars. d. Reduce taxes by $5.56 billion dollars and increase expenditures by $5.56 billion dollars.
The cost of offering safe versus risky jobs in the highway construction industry vary across firms. In the end, we would expect the market equilibrium to
A. have firms that face a high cost of offering safe jobs to pay the lowest wages. B. randomly match workers to jobs. C. have firms randomly choose their level of safety. D. match workers who dislike risk to the highest paying jobs. E. match workers who dislike risk to firms that find it cheapest to offer safe jobs.
If the current equilibrium output level is above the full-employment output level, the Fed should consider
A. selling government securities, raising the discount rate, and raising the required reserve ratio. B. selling government securities, lowering the discount rate, and raising the required reserve ratio. C. buying government securities, lowering the discount rate, and raising the required reserve ratio. D. buying government securities, raising the discount rate, and raising the required reserve ratio.