The value of Russia's petroleum exports rises predictably when it is cold in Europe and declines during the warmer months. Is the spot exchange rate (euro/RUB) likely to match this pattern?
What will be an ideal response?
No. If purchasers of Russia's petroleum expected the ruble to appreciate, they would purchase more rubles immediately, so the appreciation would be immediate and not coincide with the colder weather. The spot exchange rate is determined by the relative return and expected relative return on assets, which is affected by unexpected changes in the value of exports and imports.
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Use the following table to answer the question below. Units ConsumedTotal UtilityMarginal Utility00-1W20235X3Y10440ZThe value for Z is
A. -10. B. -5. C. 5. D. zero.
The World Bank
A) extends long-term loans for capital investment projects to developing nations. B) mediates contracts regarding minimum prices for various globally-traded commodities. C) determines the labor force participation rate in each of its member nations. D) determines the price level in each of its member nations.
What is the law of diminishing returns? Give an example of what the law of diminishing returns implies
What will be an ideal response?
If Nike and Adidas are faced with the game in the figure shown, we can predict:
A. an outcome that is good for society and less than ideal for the companies.
B. an outcome that is less than ideal for society, but optimal for the companies.
C. that both will follow their dominant strategy and society will lose.
D. None of these is likely to happen.