Reserves demanded varies
a. inversely with both prices and output.
b. inversely with prices and directly with output.
c. directly with prices and inversely with output.
d. directly with both prices and output.
d
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If today the exchange rate is 1.00 euro per dollar and tomorrow the exchange rate is 0.98 euros per dollar, then the dollar ________ and the euro ________
A) depreciated; appreciated B) appreciated; depreciated C) depreciated; did not change D) appreciated; appreciated E) depreciated; depreciated
What criticism does the textbook level against the cost-plus-markup theory of price setting?
A) The theory does not agree with what businessmen say about price setting. B) The theory does not account for vastly different percentage markups on different products. C) The theory implies firms will sometimes want to set prices below average cost per unit. D) The theory ignores sunk costs. E) All of the above.