Other things equal, when the U.S. dollar depreciates, domestic exports rise at every level of domestic income
a. True
b. False
Indicate whether the statement is true or false
True
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A diversified portfolio represents a disadvantage to small investors since it requires large amounts of money to set up.
Answer the following statement true (T) or false (F)
If Brazil experienced a period of rapid and unexpected inflation, causing Brazilians to lose confidence in the local currency (real) as a store of value, which of the following would be least likely to occur?
a. The value of the Brazilian real would depreciate on the foreign exchange market. b. Foreign currency would be used as a substitute for the real. c. The real would be used as a store of value in other countries d. Brazilians would save less. e. The purchasing power of the real would decrease.
Currently, the strategy of the Social Security system is to run surpluses to prepare for the retirement of the baby boom generation. The effectiveness of this strategy is being undermined because
a. rising interest rates make it more expensive for Social Security to borrow. b. inflation is reducing the value of the Social Security surplus. c. the trust fund is being used to finance current government expenditures, and the bonds held by the trust fund are an obligation of the U.S. Treasury. d. the federal budget surplus reduces the Social Security surplus.
Suppose you have data on durable goods, nondurable goods, fixed investment, government purchases, exports, and imports. Can you compute GDP?
A) No, since data on services and profits are missing. B) No, since data on inventory investment and profits are missing. C) No, since data on inventory investment and services are missing. D) No, since data on services and dividends are missing. E) Yes, all of the necessary components of GDP are given.