When the nominal exchange changes from 110 yen per dollar to 120 yen per dollar, the dollar has:
A. appreciated.
B. depreciated.
C. become undervalued.
D. become overvalued.
Answer: A
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Does the monopolist have an incentive to reduce cost under average cost pricing? How can this be overcome?
An expansion occurs when ________, when ________, or when both of these occur.
A. potential output grows rapidly; actual output rises above potential output. B. potential output grows slowly; actual output equals potential output C. potential output grows slowly; actual output rises above potential output D. potential output grows rapidly; actual output equals potential output
The rapid movement of money across borders can easily overwhelm a country's financial markets when:
A. a country has a heavily leveraged banking system. B. the interest rates are relatively high. C. the required reserves are relatively low. D. a country is small.
The lower the amount of unemployment benefits citizens receive, the
A) higher the wage people must be offered before they accept a job. B) the longer people search for jobs. C) higher the opportunity cost of job search. D) the higher the natural unemployment rate. E) lower the opportunity cost of job search.