In a noncooperative environment of pegged exchange rates, if the home nation is experiencing high inflation due to excessive demand, it may choose to ______, which would cause______.
A) forgo the pegged exchange rate; extreme depreciation
B) devalue its currency; the foreign nation to suffer deficient demand for its products
C) cut the monetary growth rate; a rise in interest rates
D) revalue its currency; the foreign nation to suffer excessive demand for its products
Ans: D) revalue its currency; the foreign nation to suffer excessive demand for its products
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Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers? The equilibrium wage
a. increased, and the equilibrium quantity of labor increased. b. increased, and the equilibrium quantity of labor decreased. c. decreased, and the equilibrium quantity of labor increased. d. decreased, and the equilibrium quantity of labor decreased.
Foreign exchange market intervention refers to:
a. actions taken by speculators to increase profits from trading. b. actions taken to lower currency trading risks and make the markets safer. c. the forgiving of penalties and other punishments for illegal foreign exchange activities. d. government purchases or sales of a nation's own currency in international markets to change or stabilize the value of the currency.
ADC makes latex-free tubing for blood pressure instruments. This is
A. an output of ADC. B. an input into the production of health. C. both an input and an output. D. These concepts do not apply to this sort of product.
Lower deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________
A) demand; left B) demand; right C) supply; left D) supply; right