Imports tend to fall whenever a nation's currency appreciates because foreign products become more expensive to domestic consumers
Indicate whether the statement is true or false
FALSE
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The crucial incentive to produce new ideas comes from
A) patents and copyrights. B) international trade. C) rising population growth. D) shortages of physical and human capital. E) government economic guidance.
Free-riding is linked to an absence of monitoring behavior
Indicate whether the statement is true or false
A natural monopoly occurs when a single firm can produce the entire output of the market at a lower average cost than could many firms.
Answer the following statement true (T) or false (F)
When a central bank intervenes in the foreign exchange market to purchase a foreign currency, the transaction:
a. Increases the nation's monetary base and increases the reserves account in the balance of payments. b. Decreases the nation's monetary base and increases the reserves account in the balance of payments. c. Decreases the nation's monetary base and decreases the reserves account in the balance of payments. d. Changes neither the monetary base nor the reserves account. e. Increases the nation's monetary base and decreases the reserves account in the balance of payments.