When the nominal exchange changes from 120 yen per dollar to 110 yen per dollar, the dollar has:
A. become undervalued.
B. appreciated.
C. become overvalued.
D. depreciated.
Answer: D
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According to the theory of the invisible hand, if buyers and sellers are free to pursue their own self-interest, the result often will be:
A. an equitable allocation of resources. B. an incomplete allocation of resources. C. an efficient allocation of resources. D. the exploitation of productive resources.
Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
Newly issued stocks and bonds are bought and sold in
A) primary markets. B) auction markets. C) futures markets. D) commodity markets.
During the early 1990s, many workers in military-related industries lost their jobs as the defense budget was reduced. Unemployment of this type is called
a. cyclical unemployment. b. the natural rate of unemployment. c. frictional unemployment. d. structural unemployment.