The exchange rate is
a. the rate at which one currency is traded for another
b. always constant
c. the tax a foreign nation imposes to change its currency into dollars
d. irrelevant to those who do not travel to foreign countries
e. controlled by the Federal Reserve
A
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Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
A) If the firm does not exit the industry in the long run its demand curve will shift to the right. B) The firm could exit the industry in the long run. C) If the firm remains in the industry in the long run it will break even. D) If the firm does not exit the industry in the long run its demand curve will shift to the left.
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand rises, and aggregate supply falls. b. Aggregate demand and aggregate supply rise. c. Aggregate demand and aggregate supply fall. d. Neither aggregate demand nor aggregate supply change. e. Aggregate demand falls, and aggregate supply rises.