If a consumer is initially in equilibrium, an increase in money income will:
A. Move the consumer to a new equilibrium on a lower indifference curve
B. Move the consumer to a new equilibrium on a higher indifference curve
C. Make the slope of the consumer's indifference curves steeper
D. Have no effect on the equilibrium position
B. Move the consumer to a new equilibrium on a higher indifference curve
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Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise. B) The real exchange rate will be unaffected. C) The real exchange rate will fall. D) The impact on the real exchange rate cannot be predicted.
Answer the following statements true (T) or false (F)
1) The present value of a bond is the only price that buyers are willing to spend on the bond and the only price sellers are willing to accept for the bond. 2) Junk bonds sell for higher prices than non-junk bonds. 3) The present value of a bond is the only price that buyers are willing to spend on the bond and the only price sellers are willing to acce244) A profit-maximizing manager should always calculate the net present value and use the net present value rule to evaluate any business decision that involves the payment or receipt of money at different times in the future.pt for the bond. 4) Profit-maximizing managers should make efforts to receive profits in future and incur costs in the present. 5) Interest paid of debt-financed investments is referred to as a tax shield.