If the nominal exchange rate between the American dollar and the Canadian dollar is 0.89 Canadian dollars per American dollar, how many American dollars are required to buy a product that costs 2.5 Canadian dollars?

Economies of scale exist when the

A) total cost of production falls as the output increases. B) cost of producing a unit of a good falls as its output decreases. C) cost of producing a unit of a good falls as its output increases. D) firm uses specialized resources to produce a range of goods and services.

Keynes believed that the precautionary demand for money varied

a. negatively with income. b. positively with income. c. negatively with the interest rate. d. positively with the interest rate. e. Both b and c