If the U.S. interest rate, adjusted for people's expectation of inflation, increases sharply relative to the rest of the world, then
A) there will be a decrease in the demand for dollars in foreign exchange markets.
B) there will be no change in the demand for dollars in foreign exchange markets but there will be an increase in demand for foreign currency.
C) the dollar will appreciate.
D) the dollar will depreciate.
C
Economics
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New Keynesian theories of efficiency wages imply
a. voluntary unemployment. b. real wage rigidity. c. changes in unemployment represent changes in the natural rate of unemployment. d. market clearing in the labor market in the long-run. e. None of the above
Economics
A market that mainly stresses product differentiation is called
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.
Economics