Author Question: All else being equal, if the rate of growth in productivity in Spain is greater than the rate of ... (Read 54 times)

washai · **on:** Jun 29, 2018

All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro

A) will decrease in value relative the U.S. dollar.
B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged.
C) will increase in value relative to the U.S. dollar.
D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.

Question 2

What do you think Eminem's incentive is to give a free show? Was his decision made in self-interest or in the social interest? Explain your answer.

What will be an ideal response?

1_Step_At_ATime · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

Eminem likely wants to allow his most enthusiastic fans the op-portunity to see him in concert. He also has the incentive to promote his album by the publicity he gets from having the free concert and the re-sulting massive demand for tickets. This publicity will lead to increased sales of his album and increased income to him.
Eminem's decision to give a free concert had elements of both self-interest and social interest. To the extent that his decision was motivated by the free publicity and rise in album sales, the decision was motivated by self-interest. However to the extent that a desire to allow his most enthusiastic fans the chance to see him perform, the decision also had elements of social interest.