According to PPP, the real exchange rate between two countries will always equal
A) 0.0.
B) 0.5.
C) 1.0.
D) 1.5.
C
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The stimulation of a large economy aimed at increasing growth in the rest of the world is commonly known as
A) pass-through effect. B) locomotive effect C) investment effect. D) domino effect.
Consumer sovereignty refers to a situation in which there is only one "sovereign" consumer deciding what is to be produced in the market
Indicate whether the statement is true or false
A risk-averse investor will:
A. always prefer an investment with a certain return to one with the same expected return but that has any amount of uncertainty. B. always require a certain return. C. always focus exclusively on the expected return. D. never prefer an investment with a lower expected return.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.