Since foreign credit dries up in crises when it is most needed, developing countries can protect themselves from default by
A) cutting off imports of goods.
B) allowing the exchange rate to float.
C) using equity finance only.
D) accumulating high levels of international reserves.
E) avoiding the international capital market.
D
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A restaurant owner hires a waiter to serve food to customers and clear the tables. The owner wants the waiter to be prompt in bringing out the food and clearing the table once the guests are finished with their meal. The waiter is paid a salary and cannot accept tips. The waiter would prefer to check their Facebook account and take their time waiting the tables. If the waiter does spend
considerable time checking their Facebook while the owner is not at the restaurant, the owner can motivate the waiter to be prompt waiting tables (and stop checking Facebook) in each of the following ways except which one? A) Lower the waiter's salary, but allow the waiter to earn a percentage of the restaurant's profit. B) Lower the waiter's salary, but pay the waiter a bonus based on the number of tables served in an evening. C) Lower the waiter's salary, but allow the waiter to collect tips from customers. D) Offer the waiter a higher salary.
An exchange rate that has an officially fixed value less than its fundamental or market equilibrium value is called a(n) ________ exchange rate.
A. undervalued B. depreciated C. devalued D. overvalued
The price of a foreign currency expressed in terms of the home currency is called the:
a. exchange rate. b. rate of depreciation. c. dollar-yen ratio. d. opportunity cost.
Four firms control the market for a particular good, resulting in an HHI of 6,550. Total industry sales are $1,750, and it is known that one firm has sales of $1,400 and another sales of $175. If each of the remaining two firms has the same sales, then we can conclude that the remaining two firms each have a market share of:
A. $90. B. $200. C. 0.20. D. 6,550.