Other things the same, if the exchange rate changes from .8 euros per dollar to .9 euros per dollar, the dollar
a. depreciates so U.S. goods become less expensive relative to foreign goods.
b. depreciates so U.S. goods become more expensive relative to foreign goods.
c. appreciates so U.S. goods become less expensive relative to foreign goods.
d. appreciates so U.S. goods become more expensive relative to foreign goods.
d
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The deflation of the 1930s impacted the U.S. economy because it led some consumers to ________ and because it ________
A) demand higher wages in anticipation of prices eventually rising again; increased manufacturing since firms could afford to hire more labor B) increase purchases to take advantage of the falling prices; increased the burden on lenders C) postpone purchases while they waited for prices to fall even lower; increased the burden on borrowers D) borrow more money since money was now cheap; reduced the amount of money consumers would have to pay back on their outstanding loans
In a perfectly competitive market,
A) firms can freely enter and exit. B) firms sell a differentiated product. C) transaction costs are high. D) All of the above.