Over the last decade, foreigners have been exercising
A. a declining influence over interest rates in the United States.
B. an increasing influence over interest rates in the United States.
C. about the same influence over interest rates in the United States.
B. an increasing influence over interest rates in the United States.
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Your textbook authors argue that, other things constant, entrepreneurs respond to a fall in interest rates by
A) paying less attention to long term profitability. B) engaging in irrational business behavior. C) investing in capital goods. D) making all of the above choices.
Protection of rivers in Idaho is a public good. If the marginal social cost of protecting rivers in Idaho exceeds the marginal social benefit of river protection, is there more than, less than,
or the efficient amount of river protection taking place?
How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?
A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost. B) In the economy represented by a straight-line production possibilities curve, neither good is scarce. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.
If the exchange rate between the Canadian dollar and the American dollar was fixed at 1.30 Canadian dollars per U.S. dollar and investors perceived Canadian bonds to be equal in value and risk to U.S. bonds, if the U.S. bonds are selling for $1,000 and have a 5 percent interest rate, assuming capital flows freely between the two countries what will be the price and the interest rate of the Canadian bonds?
What will be an ideal response?