If the demand of U.S. dollars drops sharply
A. the dollar will depreciate in value.
B. foreigners holding U.S. assets will suffer tremendous losses.
C. Americans will have to pay a lot more for imported goods.
D. All of the choices are true.
D. All of the choices are true.
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Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when the consumer is in consumer equilibrium?
A) 20 units of utility per dollar spent B) 10 units of utility per dollar spent C) 5 units of utility per dollar spent D) 1 unit of utility per dollar spent
The theory of rational expectations states that
a. expected inflation will be no different from actual inflation, on average. b. expectations are based on all possible information. c. individuals always act optimally. d. expected inflation will be lower than actual inflation.