If an overvalued currency is allowed to float:
A) its quantity demanded in exchange for the other currency will decrease.
B) its quantity supplied in exchange for the other currency will increase.
C) its value will depreciate.
D) its value will appreciate.
C
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If a few oil-producing countries in the Middle East decide to jointly limit the production of oil,
A) they are forming a cartel. B) they would like the price of oil to be the same as if the market were perfectly competitive. C) game theory does not apply to their actions because they are nations, not firms. D) they will try to operate as a large, monopolistically competitive firm. E) they will agree to lower the price of oil in order to increase their profits.
Most economists believe that in the short run
a. real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend. b. real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend. c. real and nominal variables are highly intertwined but that money cannot move real GDP away from its long-run trend. d. real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.