Which of the following is NOT an assumption of the behavior of exchange rates in the short run?
a. The adjustment period of time involves weeks rather than years.
b. Market forces are irrelevant and "do not matter."
c. Prices of goods adjust slowly and are therefore "sticky."
d. Economic actors behave in their own self-interest.
Answer: b. Market forces are irrelevant and "do not matter."
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Individual investors who always want to hold gold are known as:
A) goldfinger B) golden boys C) gold bugs D) goldilocks
Refer to the data. What level of total utility will the utility-maximizing consumer realize?
Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18.
A. 96 utils.
B. 108 utils.
C. 72 utils.
D. 142 utils.