Prices of finished imported goods are
a. not included in the CPI because the goods were produced outside the country
b. not included in the CPI because different countries choose different base periods
c. not included in the CPI because import prices are not denominated in U.S. dollars
d. not included in the CPI because most imports are raw materials
e. included in the CPI
E
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Mark's marginal utility from reading books is the ________ when he reads ________
A) change in his total utility; one additional book B) total utility he gets; one more book C) change in his total utility; more books D) consumer surplus he gets; books
A quota subscription is
A) the maximum amount of funds that can be drawn at the World Bank without a formal proposal. B) the maximum amount that a private investor can invest in foreign firms. C) a nation's account at the International Monetary Fund. D) when an investor sets limits on the proportion of their portfolio that will contain foreign investments.
The supply of bonds to the bond market
a. is positively related to the demand for stocks b. is inversely related to the interest rate c. is positively related to income d. is positively related to the demand for bonds e. only changes if new bonds are issued
A government can change domestic interest rates to influence short-term capital flows and thereby defend a fixed exchange rate.
Answer the following statement true (T) or false (F)