Which of the following is a true statement about equilibrium in the foreign exchange market?
A) Net exports are zero.
B) The expected return on domestic assets is equal to the expected return on foreign assets.
C) Foreigners wish to purchase the entire supply of domestic assets.
D) The relevant central banks meet regularly to choose the equilibrium exchange rate.
B
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If a firm's demand is subject to random fluctuations, the firm's ________ will also be random.
A) marginal revenue B) average total cost C) average variable cost D) marginal cost
If a nation does not have an absolute advantage in producing anything, it a. can have no comparative advantage either
b. will have a comparative advantage in the activity in which its disadvantage is the least. c. will benefit if it refuses to trade. d. will export raw materials and import finished products.
Firms are encouraged by the profit motive to use inputs efficiently
a. True b. False Indicate whether the statement is true or false
If banks are currently holding zero excess reserves and the Fed raises the required reserve ratio, which of the following will happen?
A) Banks will have a reserve deficiency. B) Banks will have positive excess reserves. C) Banks will begin to extend more loans. D) Banks will begin to extend more credit. E) b and d