The theory of purchasing-power parity implies that the demand curve for foreign-currency exchange is

a. downward sloping.
b. upward sloping.
c. horizontal.
d. vertical.


c

Economics

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Over the last decade, a country experiences a significant increase in labor productivity

a. Draw and label a labor market supply and demand diagram. Show how the equilibrium real wage rate and the equilibrium quantity of labor change as productivity increases. b. Draw and label a production function. Show how potential GDP changes as labor productivity increases.

Economics

If the government sets a specific tax and an ad valorem tax so that they raise the same amount of tax revenue, why does the ad valorem tax reduce output less than the specific tax?

What will be an ideal response?

Economics

If a firm makes its own inputs rather than buying them, it ________ need to be concerned about the hold-up problem and ________ need to be concerned with contract compliance.

A) does not; does not B) does; does C) does; does not D) does not; does

Economics

The Federal Reserve System has 12:

A. regional banks. B. members on its Board of Governors. C. member banks. D. basic functions.

Economics