An inferior good has a ________ income elasticity of demand and quantity demanded ________ as income rises
A) negative; increases
B) negative; decreases
C) positive; increases
D) positive; decreases
B
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Which of the following statements about the characteristics of debt and equity is FALSE?
A) They can both be long-term financial instruments. B) They can both be short-term financial instruments. C) They both involve a claim on the issuer's income. D) They both enable a corporation to raise funds.
In both New Zealand and Canada, what has happened to the unemployment rate since the countries adopted inflation targeting?
A) The unemployment rate increased sharply. B) The unemployment rate remained constant. C) The unemployment rate has declined substantially after a sharp increase. D) The unemployment rate declined sharply immediately after the inflation targets were adopted.
A country with a fixed exchange rate experiences upward pressure on the exchange rate value of its currency. The central bank chooses to intervene in the market to maintain its fixed exchange rate. How would the central bank go about intervening? If the upward pressure on the currency persists, would it be difficult to maintain the fixed exchange rate? Why or why not? Would your answers differ if the country carried out sterilized intervention? Why or why not? Give an example of a country that attempted to maintain its exchange rate in the face of upward pressure on its currency value. What was the result?
What will be an ideal response?
Voluntary restraint agreements are
A. a type of tariff in which the tax is a fixed amount per unit of good imported. B. a type of quota that actually benefits the firms facing the restrictions. C. a type of tariff in which the tax is based on the value of the good. D. a type of quota agreed to "voluntarily" in order to prevent more severe protection of another type.