Other things the same, if the price level falls, people
a. increase foreign bond purchases, so the dollar appreciates.
b. increase foreign bond purchases, so the dollar depreciates.
c. increase domestic bond purchases, so the dollar appreciates.
d. increase domestic bond purchases, so the dollar depreciates.
b
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The long run is referred to as a planning horizon because:
a. the firm has committed to a fixed quantity of at least one resource and the other resources are variable. b. the manager has selected the size of the firm that appears to be the least profitable and does not have the option of selecting any other plant size. c. the firm has not committed to a fixed quantity of any resource and has all options available to it. d. the manager has selected a scale of production. e. the firm is operating along a specific average-cost curve.
If Y and M are constant and V doubles, the quantity equation implies that the price level
a. falls to half its original level. b. doubles. c. more than doubles. d. does not change.