If the U.S. government increased its holdings of British pounds, definitely
A) the capital and financial account would increase.
B) the capital and financial account would decrease.
C) there would be an increase in U.S. official reserves.
D) there would be a decrease in U.S. official reserves.
C
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Older workers are:
A. Much more likely to migrate than younger workers because older workers have lower moving costs B. Much less likely to migrate than younger workers because older workers are more likely to have children at home C. Much more likely to migrate than younger workers because older have lower implicit costs of migrating D. Much more likely to migrate than younger workers because younger workers have stronger roots and ties to the local community
Along a straight line, the value of y is always equal to the value of x. The slope of the line is
A) -1. B) 0. C) 1. D) infinite.
An exchange rate crisis is caused by
A) a sudden and an unexpected collapse in the value of a nation's currency. B) the inability of the IMF to predict the immediate collapse of the currency of a country. C) the adoption of a flexible exchange rate system by a country or group of countries. D) the adoption of a fixed exchange rate system by a country or group of countries. E) Both C and D are correct.
The deadweight loss of a tax rises even more rapidly than the size of the tax
a. True b. False Indicate whether the statement is true or false