Which of the following statements best describes the effects of rapid movements in exchange rates?
a. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector.
b. Rapid movements from a weak to a strong exchange rate may cripple a country's banking sector, while rapid movements from a strong to a weak exchange rate may cripple its export industries.
c. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its import industries.
d. Rapid movements from a weak to a strong exchange rate may cripple a country's import industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector.
a. Rapid movements from a weak to a strong exchange rate may cripple a country's export industries, while rapid movements from a strong to a weak exchange rate may cripple its banking sector.
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The income paid to labor is called
A) rent. B) profit. C) interest. D) human capital. E) wages.
Two goods are substitutes if an increase in the price of one good leads to a decrease in demand for the other
Indicate whether the statement is true or false
The difference between actual real GDP and potential GDP
a. decreases as the unemployment rate rises. b. increases as the unemployment rate rises. c. increases as the employment rate rises. d. decreases as the labor force increases.
The institution ultimately responsible for managing the nation's money supply and coordinating the banking system to ensure a sound economy is called a:
A. peoples' bank. B. central bank. C. national bank. D. public banking system.