A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $100,000 per year. If he is telling the truth, what's his opportunity cost as an opera star?

If federal taxes are cut by $10 billion, aggregate demand

A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) increases by $10 billion multiplied by the tax multiplier. D) decreases by $10 billion. E) decreases by $10 billion multiplied by the tax multiplier.

If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then

A) the dollar has appreciated. B) the British pound has depreciated. C) the dollar has depreciated. D) the British pound has stayed constant in value.