The U.S. dollar appreciates against the euro. What is the impact on aggregate expenditures and income?
A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.
B
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The performance of diversified companies
A) is always greater than the performance of more narrowly focused firms. B) can be seen in greater economic profits. C) usually is greater than the overall economy. D) often simply mirrors the general economy.
If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour, then
A) Irene has the absolute advantage in the production of tables. B) Greg has the absolute advantage in the production of chairs. C) Irene has the comparative advantage in the production of chairs. D) Greg has the comparative advantage in the production of chairs.