Consider the market for dollars. The higher the exchange rate, the ________ is the expected profit from holding foreign currency and the greater is the ________
A) larger; quantity of dollars supplied
B) larger; leftward shift in the demand curve for dollars
C) smaller; quantity of dollars supplied
D) smaller; leftward shift in the demand curve for dollars
A
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The first column of the following table describes the price movement of AOL Corporation stock over a five-year period. The second column gives the period's consumer price index
Calculate the real value of the stock for each time period using year 5 as the base year. If you purchased $1,000 worth of AOL Corporation in year 1, what has happened to the purchasing power of your original $1,000 investment when you sell the stock in year 5? Year AOL CPI 1996 $4.00 147.8 1997 $3.84 155.3 1998 $7.00 163.0 1999 $37.00 165.4 2000 $70.00 172.1
Suppose that the Council of Economic Advisers tells the President that "the unemployment rate is 4 percent." The President responds, "That rate is still too high." The President's statement is
a. a normative statement b. a positive statement c. empirically verifiable by checking economic data d. an indisputable statistical fact e. an incorrect positive statement