When economists say the price elasticity of supply is elastic, they mean that
a. suppliers are willing to produce much larger amounts of their good.
b. suppliers are willing to produce only a small amount more of their good.
c. consumers are willing to purchase much larger quantities of the good.
d. the change in quantity supplied is relatively small compared to the change in price.
A
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Why is it important to understand fixed exchange rates in the modern global economy?
What will be an ideal response?
If the exchange rate between two countries is expected to remain fixed at its current rate, then
A) output growth rates must be equal in the two countries. B) price levels must be equal in the two countries. C) inflation rates must be equal in the two countries. D) nominal interest rates must be equal in the two countries. E) none of the above