Which of the following has been offered as a possible explanation to the evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies?
A) That foreign exporters have been increasingly adopting "pricing-to-market" policies.
B) That transaction costs have decreased in recent years.
C) That global leaders have encouraged this phenomenon.
D) That the share of imports with prices more sensitive to exchange rates has been increasing.
A
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In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals
A) always tend to act in an altruistic manner. B) always consider the impact of their actions on the welfare of others. C) are motivated by self-interest. D) are generally not concerned with economic questions.
During the Napoleonic Wars (1793-1815),
a. America experienced periods of full employment. b. urbanization increased sharply. c. America bore the brunt of the mercantilist policies of both England and France. d. Both a and c are correct. e. Both a and b are correct.
Which of the following observations is false?
a. Both CPI and GDP deflator tend to move in the same direction. b. GDP deflator tends to be much more volatile than CPI c. Both CPI and GDP deflator probably overstate the inflation rate. d. both a. and c. are false.
If 1 British pound was equal to $2 in 2005 and $1.75 in 2008, it indicates that the pound appreciated against the dollar in 2008
a. True b. False Indicate whether the statement is true or false