Speculation would involve using forward contracts and options to reduce the exchange rate risk on future foreign exchange transactions
Indicate whether the statement is true or false
FALSE
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The USDA threshold income level was originally based on the cost of
A) housing. B) transportation. C) basic clothing. D) a nutritionally adequate food plan.
Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His economic profits is:
a. $300,000 b. $100,000 c. $97000 d. None. He runs an economic loss of $103,000
Devaluation of a currency stimulates exports
Indicate whether the statement is true or false
Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month the company raised its price to $35 per shirt and sold 200 shirts. Evidently the company experienced a(n):
a. Increase in demand b. Decrease in supply c. Increase in supply d. Decrease in demand