The Empricist Believes That

question 11

Multiple Choice

The empricist believes that

• A) the only source of genuine knowledge is sense experience.
• B) apart from experience, reason is an unreliable and inadequate route to knowledge.
• C) there is no evidence of innate ideas within the mind.
• D) all of these choices

Analyze the effects of interest rates and trade policies on currency values and trade balances.

Describe the historical transition from the gold standard to the current system of currency exchange.

Understand the role of supply and demand in determining freely floating exchange rates.

Recognize the effects of monetary policies on international trade and exchange rates.

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Definitions:

Elasticity

A measure in economics that shows how the quantity demanded or supplied of a good changes in response to a change in price.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, as opposed to normal goods, where demand increases with income.

Normal Good

A good for which demand increases as the income of consumers increases.

Price Elasticity

measures how much the quantity demanded of a good responds to a change in the price of that good.