An American firm that buys foreign exchange because its managers expect the dollar to depreciate is
A) increasing the supply of foreign exchange.
B) decreasing the demand for foreign exchange.
C) speculating.
D) hedging.
D
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If the effects of growth in a variable compound are approximately constant, then growth is likely to be:
A) exponential. B) vector. C) logarithmic. D) linear.
Draw an aggregate supply and aggregate demand graph which shows the economy producing an output which exceeds potential output in the short run, and the adjustment that will occur as the economy adjusts to long-run equilibrium
What will be an ideal response?
If inflation is greater than expected, then the unemployment rate is
a. above the natural rate. In the long run the short-run Phillips curve will shift right. b. above the natural rate. In the long run the short-run Phillips curve will shift left. c. below the natural rate. In the long run the short-run Phillips curve will shift right. d. below the natural rate. In the long run the short-run Phillips curve will shift left.
When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction
Indicate whether the statement is true or false