When a country allows trade and becomes an importer of a good,
a. both domestic producers and domestic consumers become better off.
b. domestic producers become better off, and domestic consumers become worse off.
c. domestic producers become worse off, and domestic consumers become better off.
d. both domestic producers and domestic consumers become worse off.
c
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According to classical macroeconomic theory, changes in the money supply affect
a. variables measured in terms of money and variables measured in terms of quantities or relative prices b. variables measured in terms of money but not variables measured in terms of quantities or relative prices c. variables measured in terms of quantities or relative prices, but not variables measured in terms of money d. neither variables measured in terms of money nor variables measured in terms of quantities or relative prices
Purchasing power parity says that:
A. differences in inflation rates between countries will create changes in exchange rates. B. differences in inflation rates between countries should have no impact on the exchange rate between those countries. C. the changes in exchange rates move independently from inflation. D. for inflation to change the exchange rate, the rate of inflation has to be the same between countries.
Fixed fee contracts are desirable when there is little uncertainty regarding the output
a. True b. False
A change in the price level will cause a shift in the expenditure schedule.
Answer the following statement true (T) or false (F)