Under a fixed exchange rate system, a currency devaluation ________ the nominal exchange rate and will ________ net exports
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
C
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Suppose a consumer purchases pizza and soft drinks. If pizza is measured on the vertical axis and soft drinks are measured on the horizontal axis, then the slope of the budget line is equal to:
A. the price of pizza divided by the price of soft drinks. B. the price of soft drinks divided by the price of pizza. C. the price of pizza divided by the price of soft drinks times negative one. D. the price of soft drinks divided by the price of pizza times negative one.
The choice between specialized and broad task assignments depends on
A. the principle of separation of decision management and control. B. politicking and other influencing activities carried on within an organization. C. technological, informational, and incentive issues. D. the principle of comparative advantage to increase the output level.
Optimization in differences analyzes:
A) the total net benefits of the alternative that looks the most attractive. B) the change in the net benefits resulting from a shift from one alternative to another. C) only the costs of an alternative and not the benefits. D) the total net benefits of different alternatives.
Refer to the above table. Suppose both governments offer their respective company a $10 million subsidy
What will be an ideal response?