A domestic currency devaluation would generally lead to:
(a) Increased exports in the domestic economy.
(b) Increased imports from a foreign economy.
(c) Increase in government spending.
(d) None of the above.
Answer: (a) Increased exports in the domestic economy.
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If a monopolistically competitive firm breaks even, the firm
A) is earning zero accounting and zero economic profit. B) should expand production. C) is earning an accounting profit and will have to pay taxes on that profit. D) should advertise its product to stimulate demand.
De jure discrimination refers to a situation where blacks and whites attend segregated schools due to circumstances, not edict
Indicate whether the statement is true or false
The expansion path of product indifference curves shows the cost-minimizing combination of inputs
a. True b. False Indicate whether the statement is true or false
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP rises, and current international transactions become more positive (or less negative). b. There is not enough information to determine what happens to these two macroeconomic variables. c. Real GDP rises, and current international transactions remain the same. d. Real GDP falls, and current international transactions become more negative (or less positive). e. Real GDP and current international transactions remain the same.