Refer to Figure 29-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be
A) an economic expansion in the United States.
B) an increase in U.S. real income.
C) a decrease in Japanese interest rates.
D) speculators expect the dollar to depreciate in value in the near future.
C
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The marginal social benefit (MSB) of abatement represents
a. the additional gains to society from reducing pollution b. the reduction in damages from abatement c. society's demand for abatement or environmental quality d. all of the above
For certain intangibles that cannot be measured, it is best to
A. guess. B. exclude them from cost benefit analysis, and then calculate how large they must be to reverse the decision. C. reevaluate using the Hicks-Kaldor criterion. D. leave it to the private sector to decide on value.
Tax cuts and increased income transfers have the same fiscal stimulus, dollar for dollar.
Answer the following statement true (T) or false (F)
Which of the following transactions could contribute to a British current account surplus? Discuss.a. A French firm sells defense equipment to the British government for 250 million pounds in bank deposits.b. Great Britain makes a gift of $500 million to the Iraqi government in the form of equipment to aid in reconstruction.
What will be an ideal response?