According to purchasing power parity, which of the following is FALSE about an overvalued dollar compared to the Japanese yen?
A) U.S. merchants would be motivated to import more Japanese goods.
B) Japanese merchants would tend to export more to the United States.
C) Prices in the United States would tend to fall.
D) Over the long term, the exchange rate would fall.
E) Prices in Japan would tend to rise.
D
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As the baby boomers begin moving into the retirement phase of life during the years following 2010, spending on Social Security and Medicare will
A) rise and this will make it easier for the federal government to balance its budget. B) fall and this will make it easier for the federal government to balance its budget. C) fall and this will make it more difficult for the federal government to balance its budget. D) rise and this will make it more difficult for the federal government to balance its budget.
Monopolistically competitive firms, like perfectly competitive firms, sell a differentiated product.
Answer the following statement true (T) or false (F)