An increase in the real rate of interest that can be earned on U.S. investments above the rate that can be earned on investments in India would:
a. increase the price of the dollar in Indian rupees.
b. increase the supply of dollars by those holding U.S. dollars.
c. decrease the equilibrium exchange rate of Indian rupees per dollar.
d. all of these.
a
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The standard of living in a nation depends on
A) how well its economy functions relative to other countries. B) the size of the country, with larger nations always doing better than smaller ones. C) how well the economy functions within that country. D) whether or not its currency is adopted as the world's monetary standard.
Margaret can use her quarterly savings to buy a teakwood study table for her room or spend it on a small Christmas party with her family. The _____ cost of her enjoyment at the Christmas party would then equal the forgone utility of the study table
a. transaction b. exchange c. opportunity d. direct e. sunk
The unemployment rate may:
A. understate the effect of a recession on employment because some leave the labor force. B. understate the effect of a recession on employment because many enter the labor force. C. overstate the effect of a recession on employment because some leave the labor force. D. overstate the effect of a recession on employment because many enter the labor force.
Economists at which administrative department help design tax policy?