In a floating exchange market, the exchange rate for pesos and yen will not change when
A. the yen trades at a rate below the equilibrium level.
B. the peso trades at a rate above the equilibrium level.
C. the currencies trade at the equilibrium exchange rate.
D. it will change in all of these situations.
Answer: C
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If workers in nuclear power plants underestimate the true risk of their jobs
A) employers will pay compensating differential to compensate employees fully for the risk they have assumed. B) safety legislation will not make workers better off. C) the supply of workers in this occupation will exceed demand. D) the wages of these workers will not be high enough to compensate them fully for the risk they have assumed.
Medicare and Social Security are examples of
A) transfer payment programs. B) public goods. C) programs that do not respond to rational economic incentives. D) the efficient allocation of resources under a free market system.
If the price level rises from 125 to 150 from one year to the next, then the rate of inflation that year is 25 percent.
Answer the following statement true (T) or false (F)
All else equal, an increase in population decreases potential GDP
Indicate whether the statement is true or false