In most cases, expenditure-switching policies must be accompanied by expenditure-reducing policies because
A) expenditure-switching policies are completely ineffective without expenditure-reducing policies.
B) inflation ensues as home country domestic expenditures switch away from foreign goods to domestic goods unless overall expenditures are reduced.
C) inflation abroad may increase the demand for domestic goods, causing inflation to rise.
D) the depreciation in the exchange rate may decrease the domestic price of foreign goods, causing an increase in the current account deficit.
E) None of the above.
B
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Entry leads to higher prices and profits in an industry.
Answer the following statement true (T) or false (F)
Output Total Cost015125233340448558670Table 8.5Refer to Table 8.5. The total fixed cost of producing two units is:
A. $0. B. $8. C. $11. D. $15.
Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?
A. 200 B. 400 C. 500 D. 600
Pat earns $1,000 per week and spends $850 per week on living expenses, puts $50 in a savings account, and buys $100 worth of shares in a stock mutual fund. Pat's saving is ________, and Pat's saving rate is ________.
A. $150; 15% B. $50; 5.9% C. $50; 5.0% D. $100; 10%