Harmful carbon emissions
A) are increasingly produced by industrializing countries such as China and India.
B) are only a problem in high-income countries.
C) must be reduced by countries individually.
D) have little effect on the environment.
A
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________ in the expected future domestic exchange rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Assume a portfolio in which there is equal investment in two assets that are perfectly negatively correlated, with equally expected returns of 10 percent and 6 percent for asset A and 8 percent and 4 percent for asset B
The expected yield on this portfolio is A) 8 percent. B) 7 percent. C) 6 percent. D) 5 percent.
Suppose that the cross price elasticity of demand between goods A and B equals 1.5. Which of the following is TRUE?
A) A and B are complements because the cross price elasticity is greater than one. B) A and B are complements because the cross price elasticity is positive. C) A and B are substitutes because the cross price elasticity is greater than one. D) A and B are substitutes because the cross price elasticity is positive.
What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto-workers negotiate higher wages?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.