The General Theory of John Maynard Keynes exerted a major impact on macroeconomics during the 20th century primarily because
a. it provided the only logically consistent view of what caused the Great Depression.
b. it provided a reasonable explanation of what went wrong during the Great Depression and what could be done to prevent it from happening again.
c. it explained how gross domestic product could be measured and why this was important.
d. it derived the conditions necessary for maximum efficiency of resource use and explained how these conditions could be achieved through central planning.
B
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If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate decreases, then the domestic currency has:
A. become overvalued. B. become undervalued. C. appreciated. D. depreciated.
Assume a firm sells two complementary products. Bundling is more likely to be a successful price discrimination strategy when one group of customers is willing to pay a higher price for one of the items in the bundle and another group is willing to
pay a higher price for the other item. Indicate whether the statement is true or false
In the short run, in which of the following ways is an expansionary monetary policy most likely to cause the real interest rate and the value of the domestic currency to change?
a. increase; increase b. increase; decrease c. no change; decrease d. decrease; increase e. decrease; decrease
Stocks are a
A) form of equity. B) form of debt. C) form of debt and equity. D) just a way for firms to borrow money.