Which of the following is NOT a major factor influencing exchange rates between two countries?
A. The relative economic growth rates of the two countries
B. The relative interest rates in both countries
C. The relative budget deficits as a percent of GDP in both countries
D. The relative price levels of the two countries
C. The relative budget deficits as a percent of GDP in both countries
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During the U.S. Great Moderation, ________
A) the volatility in the inflation rate declined by 50% B) the volatility in the rate of growth of real output declined by 33% C) the economy stabilized from the higher uncertainty of the 1970s D) all of the above E) none of the above
Sue views hot dogs and hot dog buns as perfect complements in her consumption, and the corners of her indifference curves follow the 45-degree line
Suppose the price of hot dogs is $5 per package (8 hot dogs), the price of buns is $3 per package (8 hot dog buns), and Sue's budget is $48 per month. What is her optimal choice under this scenario? A) 8 packages of hot dogs and 6 packages of buns B) 8 packages of hot dogs and 8 packages of buns C) 6 packages of hot dogs and 6 packages of buns D) 6 packages of hot dogs and 8 packages of buns