A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts.
B. sell foreign currency resulting from the sale of a U.S. treasury bond.
C. purchase foreign currency in order to import a BMW.
D. purchase foreign currency in order to purchase a U.S. treasury bond.
Answer: D
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The unemployment rate
A) rises during times of rapid economic growth and falls during times of slow economic growth. B) rises during recessions and falls during booms. C) rises during booms and falls during recessions. D) tends to remain the same in booms and recessions.
A firm's opportunity costs ________
A) equal the costs of resources it buys from others in the market B) include the cost of using resources owned by the firm C) increase when economies of scope exist D) do not include any opportunity costs for resources the owner suppliers
About ________ of research on new medicines is carried out in the United States
A) 10 percent B) one-half C) two-thirds D) 90 percent
Which of the following is not money?
a. currency b. travelers' checks c. demand deposits d. savings bonds e. NOW accounts