The signaling effect of foreign exchange intervention
A) never has any effect on exchange rates.
B) can alter the market's view of exchange rates independent from the stance of monetary and fiscal policies.
C) cannot cause an immediate exchange rate change when bonds denominated in different currencies are perfect substitutes.
D) never leads to actual changes in monetary or fiscal policy.
E) can alter the market's view of future monetary policies and cause an immediate exchange rate change.
E
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Which of the following is true of stocks?
a. Stock ownership is risky because the investor can never be sure what return they will earn or what the value of their stock holdings will be in the future. b. The riskiness of stocks is one reason why their average rate of return has been higher than investments like bonds that guarantee a specified nominal amount in the future. c. Both a and b are true. d. Neither a nor b is true.
Which statement is true?
A. Most jobs in the U.S. are exportable. B. Once a firm and a union enter collective bargaining sessions, a collective bargaining agreement will be reached every time. C. The ultimate weapon of management in collective bargaining is the ability to take a strike. D. The collective bargaining agreement is confined to wages and hours.
Briefly explain Schumpeter’s model of innovation. Why does an innovator’s economic profit eventually reduce to zero?
What will be an ideal response?
Assuming the monopolist shown in the graph adjusts output to maximize profits, it is
A. earning profits in the short-run.
B. having losses in the short-run.
C. earning profits in the long-run.
D. earning profits and could be in the short-run or long-run.