Suppose the number of Euros per U.S. dollar is 1.5, the aggregate price level in Europe is 100, and the real exchange rate between the two countries is 1 . The aggregate price level in the United States is _____

Refer to Figure 4-3. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?

A) Yes, because the price P2 shows what consumers are willing to pay for the product. B) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit. C) Yes, otherwise consumers would not buy Q2 units. D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.

The possible returns to a shareholder are:

a. rent and wages. b. fixed interest and dividend. c. fixed interest and a depreciation in the price of the stock. d. rent and fixed interest. e. dividend and an appreciation in the price of the stock.