If a dollar buys less coffee in the U.S. than in Kenya, then
a. the real exchange rate is greater than 1; a profit might be made by buying coffee in Kenya and selling it in the U.S.
b. the real exchange rate is greater than 1; a profit might be made by buying coffee in the U.S. and selling it in Kenya.
c. the real exchange rate is less than 1; a profit might be made by buying coffee in Kenya and selling it in the U.S.
d. the real exchange rate is less than 1; a profit might be made by buying coffee in the U.S. and selling it in Kenya.
a
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If the U.S. economy adds to the capital stock, this may require a temporary decrease in the amount of present consumption.
a. true b. false
The more elastic the supply and the demand curves are, the:
A. greater the shortage a price ceiling will create. B. smaller the shortage a price ceiling will create. C. greater the surplus a price ceiling will create. D. smaller the surplus a price ceiling will create.