The higher the price of a foreign currency, the more expensive that foreign country's goods and services are to individuals in the domestic economy
a. True
b. False
A
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An individual rents an apartment for $200 per month. His monthly opportunity cost of commuting to work from this apartment is $50. After a year, he moves to an apartment closer to his place of work, but pays $250 as rent
Compared to the initial situation, after a year: A) his direct cost of renting the apartment increases, while the indirect cost of renting the apartment remains unchanged. B) his direct cost of renting the apartment increases, while the indirect cost of renting the apartment decreases. C) his direct cost of renting the apartment remains the same, while the indirect cost of renting the apartment decreases. D) his direct cost of renting the apartment remains the same, while the indirect cost of renting the apartment increases.
How does one determine whether demand is elastic, inelastic, or unit elastic?
What will be an ideal response?
Refer to Figure 16.1. A decrease in the depreciation rate is best represented by a movement from
A) point A to point B. B) point B to point A. C) point A to point C. D) point C to point A.
If consumers spend 75 cents out of every extra dollar received, the:
A. MPS is 0.75. B. MPC is 0.25. C. Multiplier is 4. D. Multiplier is 7.5.