Refer to Figure 19-3. Which of the following is not true?
A) Thai exports to the United States are more expensive at exchange rates greater than $.03/baht than at the equilibrium exchange rate.
B) The baht is overvalued at exchange rates greater than $.03/baht.
C) To achieve an exchange rate greater than $.03/baht, the Bank of Thailand must buy surplus dollars with bahts.
D) Thai imports from the United States are cheaper at exchange rates greater than $.03/baht than at the equilibrium exchange rate.
C
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The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will decrease if the price level
a) increases by less than expected so that firms believe the relative price of their output has decreased. b) increases by less than expected so that firms believe the relative price of their output has increased. c) increases by more than expected so that firms believe the relative price of their output has increased. d) increases by more than expected so that firms believe the relative price of their output has decreased.
Goods that are nonrival and nonexcludable are called
A) external goods. B) public goods. C) private goods. D) free goods.