If a government runs a fixed exchange rate system and increases the dollar price of its currency, we say there has been a(n)
a. appreciation of the foreign currency
b. depreciation of the foreign currency
c. revaluation of the foreign currency
d. devaluation of the foreign currency
e. fixing of the foreign currency
C
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In the short run, the monopolistic competitor is just like the perfect competitor in that
A) equilibrium is determined by setting price equal to marginal cost. B) either type of firm can earn economic profits, experience economic losses, or break even in the short run. C) each equates marginal revenue and marginal cost in order to maximize profits, with the result that price exceeds marginal revenue. D) new firms enter in the short run when firms are making profits.
The earnings of most people
A) increase steadily until retirement. B) increase with age until around age 50 due to increased experience, training, and hours worked. C) increase with age until around age 40 due to increased experience and hours worked. D) increase with age until around age 60 due to increased experience, training, and hours worked, then level off as hours worked levels off.
If the marginal propensity to consume is 0.5 and disposable income decreases by $10,000 . by how much will consumption spending decrease?
a. $10,000 b. $500 c. $50 d. $5,000 e. $9,524
If the number of Japanese yen a dollar buys falls, but neither country's price level changes, then the real exchange rate
a. depreciates which causes U.S. net exports to increase. b. depreciates which causes U.S. net exports to decrease. c. appreciates which causes U.S. net exports to increase. d. appreciates, which causes U.S. net exports to decrease.