If at current exchange rates it was cheaper to buy a product in country B than country A, we would expect people to sell country A's currency and buy country B's currency, according to the purchasing power parity theory
a. True
b. False
Indicate whether the statement is true or false
True
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When the economy is at full employment the
A) natural unemployment rate is equal to 0 percent. B) natural unemployment rate equals the unemployment rate. C) natural unemployment rate is equal to 10 percent. D) unemployment rate is equal to 0 percent.
As part of the "exchange rate effect of monetary policy," a lower money supply causes __________ of the domestic currency and thus __________ net exports
A) appreciation; rising B) appreciation; falling C) depreciation; rising D) depreciation; falling
For an inferior good, the income and substitution effects
A) work together. B) work against each other. C) can work together or in opposition to each other depending upon their relative magnitudes. D) always exactly cancel each other.
The intent of the Sarbanes-Oxley Act was to
a. help companies be better able to deal with the ethical problems raised by increased technology b. restore stakeholder confidence in the securities market after a series of scandals in the early 2000s c. create a commission that would monitor the accounting records of major businesses d. scare businesses into conforming with the GAAP standards in their accounting practices