Are we running out of natural resources?
a. No, because we may abandon the use of a particular resource before we exhaust its supply.
b. Yes, because some resources are nonrenewable.
c. Yes, because all resources are eventually nonrenewable.
d. Yes, because we live in a finite world.
e. No, because all resources are in infinite supply.
A
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What were the major reasons for the lack of sustained growth before modern times?
What will be an ideal response?
In determining the exchange rate between the Canadian dollar and British pound, if Canadian income increases, then
a. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are allowed to float b. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are fixed c. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are allowed to float d. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are fixed e. the supply of pounds will shift to the left, causing appreciation of the Canadian dollar, assuming exchange rates are fixed
Which combination of signals would be a strong indication that Fed policy is too expansionary and that a shift to a more restrictive policy is in order?
a. commodity prices are falling and the dollar is appreciating. b. commodity prices are rising and the dollar is depreciating. c. commodity prices are rising and the dollar is appreciating. d. commodity prices are falling and the dollar is depreciating.
In order for an individual to be indifferent between holding foreign or domestic bonds,
A) the Marshall-Lerner condition must hold. B) the foreign and domestic interest rates must be equal. C) the expected rate of depreciation of the domestic currency is zero. D) the interest parity condition must hold.