When output rises, AFC
A. must be rising.
B. must be falling.
C. may be falling or rising.
D. will remain constant.
B. must be falling.
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Answer the following statement(s) true (T) or false (F)
1. The travel cost method estimates benefits based on the substitutability of a natural resource and its recreational value. 2. A disadvantage of the travel cost method is that it estimates only existence value and not user value. 3. In modeling the travel cost method, the estimated benefit of improving the environmental quality of a natural resource is captured by the change in consumer surplus associated with a decrease in demand for that resource 4. The hedonic price method is based upon the premise that goods and services are valued for their individual attributes. 5. Among the advantages of the hedonic price method is that data on a product’s characteristics are readily available.
Because the value of the euro is determined by factors that affect the entire euro zone, during the recession of 2007-2009, individual countries using the euro
A) were able to use expansionary monetary policy to lessen the impact of the recession. B) were unable to have their exchange rates depreciate. C) were more insulated from unemployment increases than most countries. D) experienced a greater increase in exports than did most countries.
Most of the major currencies have had a floating exchange rate system since
A) 1973. B) 1944. C) 1956. D) 1971.
Which of the following characterizes the Monetarist viewpoint?
a. They believe that money can never affect investment. b. They believe that monetary policy is transmitted to the economy only through its effects on the interest rate and investment. c. Both a and b are part of the debate. d. Neither a nor b are part of the debate.