The key link between the twin deficits involves:
a. higher interest rates and a stronger dollar
b. lower interest rates and a stronger dollar.
c. higher interest rates and a weaker dollar.
d. lower interest rates and larger trade deficits
e. higher interest rates leading to more exports.
a
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The 45-degree reference line indicates all points at which
A) planned real saving and planned real investment are equal. B) planned real saving and planned real saving are equal. C) planned real consumption expenditures and real GDP are equal. D) planned real consumption expenditures and planned real saving are equal.
In the long run, monopolistically competitive firms typically produce with allocative efficiency
a. True b. False Indicate whether the statement is true or false
If firms in a monopolistically competitive industry are earning economic profits, then in the long run
A. new firms producing close substitutes will enter the industry and this entry will continue until economic profits are eliminated. B. these firms can continue earning economic profits because entry into the industry is blocked. C. new firms producing the exact same product will enter the industry and this entry will continue until economic profits are eliminated. D. the government will most likely regulate firms in this industry to reduce these economic profits.
The purpose of derivatives is to:
A. postpone the risk for both parties in the transaction. B. transfer the risk from one person to another. C. increase the risk so the return is larger. D. eliminate risk for both parties in the transaction.