Ceteris paribus, if incomes increase faster in the United States than in less developed countries, then the currencies of less developed countries should
A. Depreciate, and the dollar should depreciate.
B. Depreciate, and the dollar should appreciate.
C. Appreciate, and the dollar should depreciate.
D. Appreciate, and the dollar should appreciate.
Answer: C
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Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
a. setting a maximum retail price b. providing an exclusive contract to a single retailer in a market c. preventing retailers from compensating sales staff for demonstrating the product d. eliminate manufacturer staff that was demonstrating the product in stores
The new Keynesian economists believed that:
a. wages and prices are flexible in the short run. b. wages are flexible but prices are not flexible in the long run. c. wages are not flexible but prices are flexible in the short run. d. wages and prices are not flexible in the short run. e. wages and prices are not flexible in the long run.