Everything else being equal, one can expect the euro to appreciate relative to the dollar if
a. Americans decrease their travel to Germany.
b. the Germans add to their holdings of U.S. Treasury bills.
c. Americans purchase land in Germany and build factories.
d. American exports to Germany increase.
c
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Use the figure below to answer the following question.
By how much does total Economic Surplus decrease after the tax is imposed?
A. $32 B. $4 C. $38 D. $2
Health Bars is considering a two-year advertising campaign. The campaign will cost $60,000 at the end of each of the two years. The managers of Health Bars have estimated that the campaign will generate $42,000 a year in additional profit for the next three years. If the discount rate is 4 percent, what is the net present value of the advertising campaign?
A) $5,125 B) $3,388 C) $2,896 D) $3,952
If the price elasticity of demand for a good is 3.0, it is clear that the good
a. would be a poor choice to tax if the object is to raise tax revenue b. would be an excellent choice to tax if the object is to raise revenue c. is an essential good d. has a demand curve that is price inelastic at every price level e. is a complementary good
An embargo is a prohibition against trading particular goods.
Answer the following statement true (T) or false (F)