Frictional unemployment is a “necessary” cost of a dynamic economy.

According to UIP, when interest rates are equal, the exchange rate of the country's home currency is expected to:

a. fall. b. remain constant. c. rise. d. Not enough information is provided to answer the question.

New airplanes, which normally consume less fuel per passenger-mile, become less efficient for commercial airlines to purchase and use as

A) average flight distances lengthen. B) fewer non-stop flights are scheduled. C) fuel prices fall. D) the demand for airline travel increases. E) the price of new airplanes falls.