Which of the following statements is correct?
A. In the short run, interest rate differentials have the greatest impact on exchange rates.
B. In the medium run, differences in growth rates of aggregate demand have the greatest impact on exchange rates.
C. In the long run, price and inflation differentials have the greatest impact on exchange rates.
D. All of the above are correct.
Answer: D
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The United States experienced depressions in all of the following decades except
A. the 1890s. B. the 1920s. C. the 1930s. D. the 1950s.
As an individual's consumption of a good increases
A) his or her total utility increases. B) his or her marginal utility increases. C) the price of the good increases. D) All of the above answers are correct.
In the long run, a tax placed on a perfectly competitive industry should have what effect on the entire market?
A. Not affect the total amount of the good sold. B. Increase the total amount of the good sold. C. Decrease the total amount of the good sold. D. One cannot tell.
Refer to the accompanying figure.
This firm's marginal revenue curve would intersect the vertical axis at ________.
A. $20 B. $0 C. $35 D. $70