When does the degree of international capital mobility affect the qualitative change in the exchange rate (assume flexible exchange rates)?
a. The degree of international capital mobility is important when analyzing changes in monetary policy.
b. The degree of international capital mobility is important when analyzing changes in fiscal policy.
c. The degree of international capital mobility never affects the qualitative change in the exchange rate.
d. The degree of international capital mobility affects the qualitative change in the exchange rate when analyzing changes in the monetary policy as well as changes in the fiscal policy.
.B
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The marginal social cost is the cost of producing an additional unit of a good or service that falls on people other than the producer of the good or service
Indicate whether the statement is true or false
The theory of consumer demand
a. can be used to explain how an individual allocates time between two competing uses b. is valid only for choices among various physical goods c. is valid only for goods and services purchased for cash d. is valid only if consumers are perfectly rational e. can explain the demand for normal goods, but not the demand for inferior goods